In March, Japan’s capacity utilization decreased to -2.4%, down from -1.1% previously.

    by VT Markets
    /
    May 16, 2025
    Japan’s capacity utilization dropped by 2.4% in March, following a previous decrease of 1.1%. This decline shows less efficient use of the country’s resources during this time. In other market news, the EUR/USD moved up toward 1.1200, influenced by a weaker US Dollar due to recent economic data. Likewise, GBP/USD rose above 1.3300, driven by positive GDP figures from the UK and a softer Dollar.

    Gold Price and Bitcoin Resistance Levels

    Gold prices have paused in their recovery near the 200-period SMA on H4 charts, amid less pressure from global markets thanks to the US-China trade truce. Meanwhile, Bitcoin is testing a key resistance level at $105,000, with a possible breakthrough suggesting strong bullish control. In the UK, economic growth in the first quarter hints at a recovery from last year’s stagnation, although questions about the data’s accuracy remain. A recommendation list of the best brokers for trading EUR/USD in 2025 includes those with competitive spreads and efficient platforms, suitable for both new and experienced Forex traders. Japan’s recent 2.4% drop in capacity utilization in March, following a 1.1% decline, indicates a further fall in production efficiency. This suggests that fewer resources are generating productive outcomes compared to earlier times, typically linked to weak domestic demand or hesitation from manufacturers to increase production. Such declines, especially when consecutive, often reflect a broader slowdown in industrial activity rather than just a temporary issue. Caution is advised for strategies tied to Japanese output or manufacturing benchmarks, particularly with leveraged positions related to industrial performance. The rise of EUR/USD near 1.1200 largely stems from a weakening Dollar, as recent U.S. data lowers expectations for aggressive monetary tightening. This currency shift can affect rate-sensitive instruments. The euro’s gains are not driven by optimism in the eurozone but rather by the Dollar’s decline, making this distinction critical for identifying potential resistance ahead. Monitoring short-term interest rate swaps is crucial as they can signal early directional changes before market responses materialize.

    Sterling Gaining Ground Against the Dollar

    The British Pound gained against the Dollar, pushing past 1.3300, following positive GDP reports from the UK. While quarterly growth hints at cyclical strength, there are still concerns about the reliability of the underlying data, which may dampen enthusiasm. Policymakers’ guidance might hold more importance than the headline figures, especially if growth momentum proves fragile. Observing the yield spread between UK gilts and US Treasuries is important when the currency pair strengthens, as shifts in yield differences can amplify or diminish upward moves. Gold’s price remains stuck around the 200-period simple moving average on the four-hour chart, unable to break higher convincingly. Its earlier momentum has slowed due to decreased demand for safe-haven assets, thanks to improved relations between the US and China. However, if external pressures rise, such as unexpected inflation or hawkish central bank statements, prices could swing sharply. This SMA level is watched closely for trend confirmation, so price movements around it may influence risk models. Bitcoin approaching $105,000 is significant. This level serves as a temporary ceiling that has halted further price increases. Notably, compressions like this below resistance can lead to increased volatility. A clean breakout with volume could lead to a sharp price rise. Long positions should consider tighter trailing stops or planned exits at known liquidity levels above. Increased leverage in this space adds short-term momentum if prices begin to rise. For trade setups involving the euro-dollar into 2025, don’t overlook brokerage platforms with low spreads and excellent execution. Effective infrastructure is crucial, particularly during volatile times when every millisecond counts. Adjusting systems for margin efficiency and filtering out slower platforms are essential actions to take now. Ultimately, it’s not just about identifying a breakout or following a trend—maintaining disciplined execution and adapting to data changes is what makes the biggest difference. Create your live VT Markets account and start trading now.

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