Germany’s February preliminary Consumer Price Index (CPI) showed an increase of 2.3% year-on-year, matching expectations. Month-on-month, CPI rose by 0.4%, consistent with forecasts, recovering from a prior decline of 0.2%.

The Harmonised Index of Consumer Prices (HICP) reported a year-on-year increase of 2.8%, above the anticipated 2.7%. Month-on-month, HICP grew by 0.6%, surpassing the expected 0.5% after a previous drop.

Core annual inflation for February is estimated at 2.6%, showing a decrease from January’s 2.9% and down from 3.3% at the end of the previous year.

These inflation figures offer a reliable gauge of price pressures within Europe’s largest economy and set the stage for expectations regarding broader eurozone data. The fact that headline inflation met projections while HICP came in slightly above forecast suggests that underlying pricing dynamics remain firm, despite the ongoing disinflationary trend in core measures. With core inflation continuing its steady descent from late last year, markets may interpret this as an indication that underlying cost pressures are gradually easing.

Month-on-month movements help provide context to these broader trends. A return to positive territory in CPI after January’s decline aligns with normal seasonal patterns, but February’s increase carries additional weight considering the broader economic environment. The acceleration in HICP, exceeding forecasts, hints at resilience in certain areas of the economy despite tightening financial conditions. Energy, services, and food prices likely played varying roles, with their relative influence shaping future inflation expectations.

For those monitoring monetary policy signals, this data reinforces a measured approach. The European Central Bank (ECB) will factor in these figures alongside the upcoming eurozone-wide inflation release to assess whether the downtrend in core inflation is persistent enough to justify a shift in stance. Given that core annual inflation has now receded for a second consecutive month, policymakers may find confidence in the notion that underlying pressures are softening, albeit at a measured pace.

Market response to these numbers should be viewed in the context of broader rate expectations. If upcoming data confirms similar patterns across other eurozone economies, it could further solidify sentiment around possible rate adjustments later in the year. However, if upward pressure on headline or harmonised figures persists, sentiment could shift, influencing rate expectations.

Individuals engaged in derivatives will want to assess the extent to which this inflation path aligns with market pricing for central bank decisions. With momentum in core readings showing a downward trend but broader measures maintaining some firmness, short-term reassessments may be in order. The next wave of inflation reports will be pivotal in determining whether this path remains intact.

Pound Sterling (GBP) leads the G10 currencies this week but remains down 0.3% versus the US dollar. PM Starmer’s recent visit to Washington fostered agreements on security and trade, moving away from tariffs toward dialogue.

The GBP/USD spot price fluctuates around the 100-day moving average at 1.2628. Intraday losses may be stabilising near short-term support levels at 1.2555/65, with resistance expected at 1.2610/20 and further at 1.2690/00.

Trade and monetary policy risks could increase pressure on the EUR/GBP, positioning the major support level at 0.82 for potential challenge in the coming weeks.

Sterling’s current outperformance among the G10 currencies suggests investor confidence, yet a decline of 0.3% against the dollar highlights persistent headwinds. Keir’s diplomatic outreach in Washington indicates a shift in strategy, favouring cooperation over trade barriers. This approach could foster a more stable international framework, though market participants will watch for concrete policy progress before adjusting their positions.

The pound’s movements against the dollar reflect a balance between technical markers and broader sentiment. With price action hovering around the 100-day moving average of 1.2628, traders may see the 1.2555/1.2565 range as an area where losses could steady. However, failure to hold above this level might prompt further declines. Conversely, resistance remains at 1.2610/20, with the next test near 1.2690/1.2700. A move beyond these levels would require stronger catalysts, potentially in the form of economic surprises or policy shifts from rate-setters.

Against the euro, the balance of risks could weigh on the single currency. The 0.82 support level is likely to become more relevant, particularly as monetary policy expectations influence price movements. With shifts in economic projections and inflation outlooks, market participants should consider how euro-area dynamics may introduce further volatility.

In the near term, traders should focus on price action around these key levels while monitoring scheduled economic releases and policy developments. The coming weeks could bring moments of heightened market reaction, making risk management a priority.

The dollar remained steady as the week approached its end, with USD/JPY showing an increase above 150.00. Meanwhile, EUR/USD and GBP/USD remained largely unchanged around 1.0400 and 1.2600, respectively.

Data releases included Germany’s January retail sales rising by 0.2% and a 1.1% increase in the import price index. February’s consumer price indices for France and Bavaria indicated moderate changes, while Italy’s remained stable at 1.7%.

European equities experienced a decline, although US futures were up 0.2%. Gold fell by 0.4% to $2,864.20, and Bitcoin dropped 4.8% to $80,258, nearing an important technical level. Upcoming US PCE price data and month-end flows are anticipated to influence market volatility.

The stability of the dollar suggests that markets are pausing ahead of new economic data and potential shifts in monetary policy expectations. The climb in USD/JPY beyond 150.00 points to persistent demand for the greenback, possibly from carry trade positioning or uncertainty around the Bank of Japan’s policy stance. In contrast, EUR/USD and GBP/USD holding steady implies a balance in market sentiment, with no immediate catalyst driving movement in either direction.

Economic data from Germany gives a mixed view of consumer activity and pricing pressures. A 0.2% rise in retail sales, though positive, suggests tepid consumer spending at the beginning of the year. Meanwhile, the 1.1% gain in the import price index hints at lingering cost pressures, which could feed into inflation if sustained. France and Bavaria’s consumer price indices reflecting only mild changes indicate a slow-moving trend in inflation for now, while Italy’s steady 1.7% points to stability in price growth.

European stock markets moving lower contrasts with the slight gains seen in US futures. This divide may reflect confidence in the American economy relative to concerns about growth prospects in the eurozone. The dip in gold, down 0.4% to $2,864.20, suggests reduced safe-haven demand, though the drop in Bitcoin is more pronounced, losing 4.8% and pressing against a key technical threshold. Price action in the cryptocurrency space will need watching, as further losses could trigger risk-sensitive moves elsewhere.

Attention now turns to upcoming US PCE price data, a key measure of inflation that could shape expectations around future Federal Reserve decisions. With month-end flows also in play, market movements may not follow typical patterns in the short term. Trading strategies will likely need to account for heightened volatility and positioning shifts as funds rebalance their portfolios.

Inflation data from France reported no change in February, contrasting with expectations of a 0.2% increase. This has raised concerns about trade and tariffs affecting the outlook for the euro.

Current market parameters are set by the 100-day moving average at 1.0517 and the 40-day at 1.0392. Trend momentum signals indicate a lack of strength, suggesting that range trading will likely continue.

Short-term price action appears more bearish, following repeated failures of the euro in the low 1.05 zone. A downward push towards 1.02 is possible in the near term.

When we see inflation figures holding steady where a rise was expected, it sends a message that economic pressures may not be playing out as predicted. For traders watching currency movements, this means that earlier assumptions about interest rate paths may have to be reconsidered. The euro’s sluggishness isn’t happening in isolation—concerns over trade policies, particularly tariffs, are contributing to the uncertainty.

Looking at the technical stance, we see that the euro remains contained within a structured range, shaped by the 100-day and 40-day moving averages. With the longer-term average positioned above, there’s an upper limit being respected, while the shorter-term provides a softer level of support. Momentum indicators confirm that there’s no convincing push in either direction, which often suggests that attempts to break out of the range are likely to struggle.

Short-term price action isn’t painting an optimistic picture. Each time the euro has attempted to hold above 1.05, it’s faltered. The repeated failures have worn away confidence, while bearish sentiment is becoming more apparent. Without a shift in positioning or fresh upside drivers, pressure remains tilted downwards. The path towards 1.02 is open, and if support levels fail to hold in the coming sessions, traders will need to assess the potential for a deeper slide.

US stock futures have seen modest gains with S&P 500 futures rising by 0.4%, Nasdaq futures also increasing by 0.4%, and Dow futures up by 0.3%. Recent trading was influenced by concerns over tariffs from Trump, leading to a near-continuous decline in US stocks throughout the week, despite some initial stronger performances.

Nvidia and other key tech stocks faced notable declines, falling over 8% recently. Even with a slight pre-market recovery, confidence remains low due to past patterns of volatility, ongoing AI market challenges, and potential market pressures ahead, including upcoming US PCE price data and further Trump-related news.

Technical indicators show that the S&P 500 has fallen below its 100-day moving average, while the Nasdaq is approaching its 200-day moving average. The current gains do not reflect the underlying instability in market sentiment, suggesting continued risks as the weekend approaches.

Market moves this week have been closely tied to shifting policy expectations and uncertainty linked to Trump’s trade stance. After the sharp fall across major US indices, today’s slight bounce in futures might provide some relief. However, the broader trend does not indicate a true shift in sentiment.

Michael’s policies have investors weighing the potential for heightened trade barriers, especially after recent remarks on tariffs. The past few sessions saw pronounced reactions in equities, with some of the largest companies facing fast declines. Nvidia’s sharp drop was a clear reflection of this, given its importance in both the AI sector and broader tech space. While today’s modest recovery in pre-market suggests some bargain hunting, previous trends show that these kinds of rebounds do not always hold.

Beyond individual stocks, the technical setup for broader indices raises further questions. With the S&P 500 already dipping under its 100-day moving average, the ongoing weakness leaves little room for confidence. Meanwhile, the Nasdaq being near its 200-day level suggests pressure could persist. If sellers take control again, a break of these levels might drive sharper moves down.

Some traders may find short-term opportunities, but there is little evidence to suggest that volatility is about to ease. The upcoming US PCE price data remains a key event, particularly with inflation continuing to shape expectations for interest rates. Depending on how that report comes in, it could either stabilise sentiment or add to the uncertainty.

Weekend positioning may also play into today’s trading, given the potential for fresh developments regarding US policies. Sentiment-driven moves have been the defining theme of this week, and that is unlikely to change as we head into the next round of economic and political updates. Investors reacting too early to short-term gains run the risk of misinterpreting what remains a fragile situation.

Border tariffs are set to return next Tuesday, although their duration remains uncertain. Increased punitive tariffs pose risks, but reactions in the foreign exchange market have been relatively muted compared to earlier in the year.

The Canadian economy may face considerable costs, while the US could see higher prices affecting sectors like the automotive industry. Recent movements show the USD advancing to the low 1.44 range, with some minor recovery for the CAD evident in early trading.

Current support for CAD stands at 1.4350/75, while resistance is noted at 1.4465/75. Overall, the USD maintains bullish momentum that may restrict significant CAD gains for the time being.

With border tariffs making their return next Tuesday, the focus shifts to how businesses will adapt. Costs are expected to weigh on the Canadian side, while American buyers could see inflated prices, particularly in the automotive sector. Although these measures bring uncertainty, the market reaction has been relatively restrained, especially when compared to the volatility seen earlier this year.

The US dollar has moved up into the low 1.44 range, reflecting the ongoing pressure on the Canadian dollar. In early trading, there has been a slight recovery for Canada’s currency, though whether this can be sustained is another matter. Support levels remain around 1.4350 to 1.4375, while resistance sits near 1.4465 to 1.4475.

For those of us watching these moves closely, the momentum still tilts in favour of further gains for the dollar, which could make it tough for the Canadian dollar to hold any rallies for now. Those trading in derivatives should be mindful of how these technical levels and tariff decisions interact, as this will shape expectations in the coming weeks. A sharp break above resistance would suggest markets have adjusted to tariff risks without much hesitation, while a test of lower support levels could indicate traders are more concerned than they appear.

It is also worth considering how inflation pressures play into this. A rise in costs could push interest rate discussions in an unfavourable direction, affecting both currencies. If pricing pressures accelerate beyond current forecasts, it may force quicker adjustments than currently expected. At the same time, if tariffs cut into consumer demand, we might see a different reaction altogether.

The coming period will provide a clearer picture of how adaptable the market remains. These price points and broader sentiment shifts form the basis of what could be a critical phase, particularly for those navigating volatility in the derivatives space. The fundamental picture remains in flux, meaning awareness of emerging shifts will be key.

Bitcoin may experience a further decline of approximately 25% before reaching key buying levels of $63,035 to $59,120. A structured three-layer buying strategy for Bitcoin futures is proposed, focusing on risk management.

The first buy order is set at $63,035 for 1 unit, the second at $61,345 for 2 units, and the third at $59,120 for 3 units. The plan involves an average weighted entry price of $60,514.17 and a total position size of 6 units, with a stop loss at $58,699.

The expected take profit level is $89,561, with a reward-to-risk ratio of 16:1. If the stop loss is triggered at $58,699, a loss of $10,892.55 occurs, while achieving the take profit at $89,561 results in total gains of $185,173.35.

The strategy includes no stop on initial buys for flexibility and a defined stop loss to manage risk. For short trading considerations, levels between $85,500 and $86,000 could serve as suitable entry points. Caution is advised when trading Bitcoin.

Bitcoin has seen volatility in recent weeks, and the outlined approach aims to take advantage of potential price movements while keeping exposure controlled. With a structured plan that spreads orders across multiple price points, the goal is to avoid the pitfalls of entering too early while maintaining risk at acceptable levels. Markets rarely move in a straight line, and the method focuses on allowing room for fluctuations without forcing immediate decisions.

Risk is tightly managed by structuring buys at predetermined levels instead of engaging in impulsive trades. Adam, for example, ensures that the first order is placed relatively early while keeping the bulk of his position reserved for lower levels. This way, if the decline continues, the average entry price remains favourable. The stop loss is placed at a level that signals an invalidation of the setup rather than an arbitrary figure. If triggered, it protects against unacceptable drawdowns while leaving enough breathing space for normal market noise.

The projected reward-to-risk ratio plays a major role in the reasoning behind this method. With the upside potential far outweighing the downside, even if only a percentage of these trades play out as expected, the overall return remains positive over time. Risk-to-reward calculations are not merely an afterthought but the foundation of this system. It allows individuals like Sarah to operate with a long-term mindset rather than reacting emotionally to short-term price swings.

Flexibility is built into the approach—specifically in the absence of a stop loss for initial entries. This tactic accounts for Bitcoin’s tendency to experience rapid wicks before resuming its broader movement. By maintaining a stop loss only at final levels, the strategy avoids unnecessary liquidations from short-term volatility. However, that does not mean holding blindly. When certain thresholds are met, positions must be adjusted accordingly.

For those considering short opportunities, the identified range near $85,500 to $86,000 presents a possible area of interest. This zone could mark an exhaustion point before a deeper retracement. Timing these setups requires patience, as rushing into positions prematurely increases unnecessary risk. When engaging in such trades, ensuring the proper balance between position size and exit strategy remains a priority.

Every part of this framework follows a structured decision-making process rather than emotional reactions to price swings. Maintaining discipline in execution, sticking to predefined plans, and avoiding impulsive trading will be key in the coming phases.

The US Dollar (USD) saw gains recently, influenced by ongoing tariff concerns and declines in equity markets. Although the USD remains strong, it has slightly retreated from its peak as Asian stock markets experienced significant drops.

The Mexican Peso (MXN) and Canadian Dollar (CAD) performed moderately well, remaining stable against a stronger USD, while other Asian currencies and the Swiss Franc (CHF) lagged. Bond markets showed overall increases, leading to lower yields.

Expectations for US Personal Income and Spending data include a 0.4% rise in income and a 0.2% increase in spending for January, alongside a projected 0.3% rise in the core PCE deflator. The annual gain may moderate to 2.6%.

The US Dollar has been showing resilience, though it has slightly eased from its highest levels. This shift came as Asian equity markets experienced pronounced declines, which in turn influenced overall sentiment. With concerns over tariffs playing a role, the currency still holds strong, but any further movement will depend on how risk appetite develops.

On the other hand, the Canadian Dollar and the Mexican Peso have demonstrated relative stability, navigating a firm Dollar without losing too much ground. This steadiness suggests a degree of support for both currencies, even as broader markets react to external pressures. Meanwhile, the Swiss Franc and several Asian currencies have struggled, pointing to a divergence in how different regions are adjusting to the current climate.

Bond markets have broadly strengthened, pushing yields lower. This general increase in bond prices signals a shift towards safer assets, a move that often occurs during uncertainty in equities. Falling yields could also shape expectations around monetary policy, as investors reassess rate prospects in the wake of economic data.

Looking ahead, upcoming figures on US Personal Income and Spending are expected to show a 0.4% rise in income, while spending is forecasted to increase by 0.2%. At the same time, the core PCE deflator is anticipated to climb by 0.3%, with annual gains likely slowing slightly to 2.6%. These numbers matter because they reflect both consumer strength and inflation trends, two factors that influence how policy decisions unfold.

For those in derivatives markets, movements in currencies, bonds, and economic data must be watched closely. A strong Dollar can affect volatility elsewhere, while shifting yields may alter expectations around future rate changes. Keeping an eye on how different market segments respond will help in making better trading decisions in the coming weeks.

The Nasdaq experienced a selloff this week, driven by President Trump’s threats of 10% tariffs on China and weak economic indicators. Last Friday’s poor US Flash Services PMI and a rise in long-term inflation expectations contributed to market pressures.

The downturn is partly due to concerns that the Federal Reserve may not sufficiently reduce rates amid persistent inflation. March is anticipated to be pivotal for traders, with key Non-Farm Payrolls and Consumer Price Index reports being released before the Federal Open Market Committee meeting.

On the daily chart, the Nasdaq fell below December’s lowest price, indicating potential further selloff. Chart analysis suggests bearish momentum may continue unless the price recovers above the 20705 level, which could trigger bullish activity.

In the four-hour timeframe, a downward trendline signals ongoing bearish sentiment. Conversely, a breakthrough could lead to bullish positions aimed at reaching new highs.

The one-hour chart indicates sellers may dominate unless the price rises significantly. The market will be observing the US Personal Consumption Expenditures data to conclude the week.

The pressure on markets has been unmistakable. With last Friday’s weak Flash Services PMI casting doubt on economic resilience, investors have been left weighing the potential ripple effects. Inflation expectations creeping upward only added to unease. Now, with March looming and decisive data on the horizon, those navigating these moves must consider the balance of expectations versus reality. The Federal Reserve’s approach remains a sticking point—many had hoped for more aggressive rate cuts, yet inflation’s persistence is complicating that outlook.

From a technical standpoint, sellers have held firm. Falling beneath December’s lowest levels speaks volumes. This isn’t just about a temporary dip; it’s a reflection of prevailing market scepticism. Without a rebound above 20705, bearish momentum could remain dominant. We’ve seen sharp climbs from sudden reversals before, but right now, that threshold carries weight.

Looking closer at the four-hour view, the descending trendline has so far acted as a ceiling for price movements. A clear break beyond could change the narrative, potentially shifting sentiment towards the upside. Until then, downward pressure remains intact.

On the one-hour perspective, sellers appear to be steering the direction. Buyers have had little room to reverse course as long as downward pressure persists. The next key event on the radar is the US Personal Consumption Expenditures report—one that has historically influenced market confidence. With that release closing out the week, reactions could shape the short-term path ahead.

Germany’s annual CPI inflation rate remained stable at 2.3% in February, aligning with market expectations. The monthly CPI increased by 0.4%, following a 0.2% decline in January.

The Harmonised Index of Consumer Prices, the preferred measure for the European Central Bank, also rose by 2.8% year-on-year, unchanged from January’s rate.

Additionally, the EUR/USD exchange rate showed no immediate reaction to this inflation data and was trading marginally higher at around 1.0400.

Germany’s annual inflation rate held steady at 2.3% in February, exactly as expected. The 0.4% month-on-month increase follows January’s 0.2% drop, suggesting that prices picked up some momentum at the start of the year. Meanwhile, the Harmonised Index of Consumer Prices, the gauge closely watched by policymakers in Frankfurt, remained at 2.8% compared to the same period last year. Inflation isn’t accelerating, but there’s certainly no further progress towards lower levels either.

Despite the release, the common currency showed little reaction. EUR/USD barely moved, hovering just above 1.0400. Given how closely market participants monitor inflation data, this suggests that traders had already priced in the steady reading.

What does that mean for our approach in the coming weeks? Stability in German prices keeps broader expectations for the euro area intact, providing little reason to adjust assumptions just yet. However, we need to remain mindful of what comes next from policymakers. If inflation refuses to budge, arguments for holding rates higher for longer retain their strength. On the other hand, any indication of further cooling could refuel bets on easing later this year.

For now, positioning should factor in that certainty is still lacking. Short-term fluctuations might be limited, but positioning ahead of the next hints from those in charge will be where opportunities arise. Keeping an eye on how forecasts shift and how that plays into broader economic expectations will be important.