Germany’s Harmonised Index of Consumer Prices (HICP) recorded a month-on-month increase of 0.6% in February. This figure exceeded the anticipated rise of 0.5%.

This increase in Germany’s Harmonised Index of Consumer Prices (HICP) might not seem substantial at first glance, but it does set a tone for the broader economic trend. A 0.6% rise, exceeding the expected 0.5%, signals that inflationary pressures remain at play.

For those who watch inflation figures closely, this suggests that price increases are still showing resilience. With Germany being the largest economy in the eurozone, the knock-on effects could extend beyond its borders. A stronger-than-expected reading may influence decisions within the European Central Bank (ECB), especially regarding interest rates.

Looking ahead, this data nudges traders to re-evaluate their outlook on inflation-linked assets. If inflation continues to surprise on the upside, expectations around rate cuts might need to be adjusted. Movements in bond yields could follow, which in turn might affect pricing in derivative markets.

This is where vigilance is essential. One report, on its own, is not enough to shift an entire strategy, but when placed within a broader dataset, it starts shaping a picture. Since inflation expectations interact with various asset classes, staying ahead of the next release may offer an opportunity to anticipate shifts in market sentiment.

Keeping a careful eye on upcoming statements from policymakers will be the next step. Any hints that decision-makers are concerned about persistent inflation could send ripples through interest rate markets. How the ECB reacts may determine how traders position themselves in the coming weeks.

Gold has fallen below a major upward trendline, reflecting increased bearish momentum amid a selloff in the US stock market. The decline in gold prices is compounded by weaker economic data and rising inflation expectations.

The next Non-Farm Payroll (NFP) and Consumer Price Index (CPI) reports will be important for market movement, with strong inflation data expected to impact gold negatively. Currently, the price is pulling back from all-time highs, and buyers may find better risk-reward potential around the 2790 level, while sellers target a break below this level towards 2600.

Technical analysis on the 4-hour chart indicates a downward trendline that characterises the ongoing bearish sentiment. Sellers are likely to push down towards the 2790 level if the price experiences a pullback, while buyers need to see a break above the trendline to regain bullish momentum.

On the 1-hour chart, a minor downward trendline suggests continued bearish pressure. Sellers may utilise this trendline to drive prices lower, while buyers aim for a breakthrough to the next trendline. Today, the week concludes with the release of US Personal Consumption Expenditures (PCE) data.

Gold’s movement remains in focus as price action struggles to find support amid a broader market selloff. The dip below a key trendline, which had previously offered strong support, signals that sellers remain in control. With economic data continuing to point towards higher inflation expectations, pressure on gold has yet to subside. Traders are watching whether the upcoming NFP and CPI reports reinforce this sentiment or provide some relief.

Jerome’s role in the Federal Reserve’s decision-making is once again under scrutiny. Inflation remains above target, and the Fed’s stance on rate policy will depend heavily on whether incoming data supports further tightening or allows for a shift in tone. Market participants should be prepared for volatility as any indication of persistent inflation could weigh further on gold. Inflation data exceeding forecasts has historically led to a strengthening dollar, which typically puts downward pressure on commodities.

The technical outlook aligns with this broader theme of uncertainty. On the 4-hour chart, a declining trendline remains intact, reflecting a pattern of lower highs. If gold attempts an upward move, it would need to break above this resistance to suggest a shift in momentum. Otherwise, sellers remain motivated to drive prices down towards the key 2790 level, which has acted as a pivotal point. A clean break below this could expose 2600 as the next target.

Shorter timeframes paint a similar picture. On the 1-hour chart, a minor trendline reinforces the current downward structure. This level is frequently tested, and traders can expect sellers to defend it aggressively. A failure to break through keeps pressure towards the recent lows, while any sustained move above this trendline would signal early signs of strength.

Today’s release of US PCE data adds another layer of complexity. Market reaction will hinge on whether inflationary pressures remain strong or show signs of easing. If the data comes in hotter than expected, gold may struggle to find buyers at current levels. Conversely, weaker inflation figures could provide a short-term reprieve, especially if market sentiment shifts in anticipation of a more cautious approach from policymakers.

Looking ahead, attention remains firmly on upcoming economic reports. The reaction to NFP and CPI will determine whether the current downtrend accelerates or stabilises. Volatility is expected as traders position for potential shifts in price direction.

The Pound Sterling (GBP) is showing weakness against the US Dollar (USD), trading near 1.2570. This decline is influenced by a cautious market sentiment following President Trump’s announcement of additional tariffs on China, alongside import duties on Canada and Mexico.

As of Friday, the US Dollar Index (DXY) has risen to 107.45. The GBP/USD pair has lost over 0.5% in value recently and appears to be consolidating around the 1.2600 level while awaiting further economic data from the US, specifically January inflation figures. During the previous trading session, the USD gained strength due to safe-haven demand amid broader market concerns.

The British Pound has struggled to hold its ground against the US Dollar, dipping to around 1.2570. This move lower comes as traders weigh the latest policy decisions out of Washington. President Trump’s tariffs on Chinese goods, as well as additional levies on imports from Canada and Mexico, have shaken investor confidence. That uncertainty has only strengthened demand for the US Dollar, driving the broader currency index up to 107.45.

This selling pressure on Sterling has resulted in a steep decline of more than 0.5% in the last few sessions, pulling the exchange rate closer to 1.2600. For now, the pair appears to be in a holding pattern, with traders pausing before the release of January’s inflation numbers from the United States. The movements in the previous session were mainly driven by a shift towards safer assets, boosting the Dollar as concerns spread across financial markets.

Looking ahead, traders in GBP/USD should be prepared for further volatility as fresh economic data is expected. Inflation figures from the US will be pivotal, particularly for those involved in derivatives. If the inflation report comes in above expectations, we will likely see an increase in speculation surrounding Federal Reserve policy, putting further pressure on the Pound. Conversely, a weaker reading could weaken demand for the Dollar, allowing Sterling some temporary relief.

Beyond data releases, sentiment among investors remains fragile due to trade policies from the US government. The introduction of new tariffs—particularly on China—has reignited worries about disruptions to global supply chains. This kind of uncertainty tends to favour the Greenback, meaning any abrupt policy updates from Washington could add to Sterling’s struggles. Traders must remain alert to potential comments from key officials, as any shift in rhetoric could trigger sudden market movements.

The technical picture also suggests that the Pound is under pressure. A sustained break below 1.2570 may open the door to further declines, with the next area of interest sitting closer to 1.2500. On the other hand, if Sterling manages to rebound and push beyond 1.2630, short-term traders may see opportunities for a recovery towards 1.2700. For those managing risk via options or futures, adjusting hedge positions accordingly could be a wise approach given the potential for sharp price swings.

With so many moving parts—from trade policies to inflation data and interest rate speculation—the coming weeks could be particularly volatile. We must continue monitoring shifts in investor sentiment while keeping a close eye on technical levels that may influence trading decisions.

The USD/JPY pair rose above 150.00, reaching its highest level since the previous week. This increase comes after a period of consolidation between 149.00 and 150.00, with support found at the January low of 148.63.

The recent jump to 150.40-50 appears to be influenced by a technical break of the 200-hour moving average. Despite this rise, a bearish sentiment has persisted due to sellers maintaining control over price action.

The bond market’s behaviour is still a factor, with 10-year Treasury yields at 4.24%, possibly affecting the USD/JPY’s momentum. Further analysis of month-end flows and upcoming US PCE price data will be necessary to assess the sustainability of this movement.

The movement beyond 150.00 suggests that previous resistance levels are being tested, and the break above the 200-hour moving average signals a potential shift in short-term momentum. However, reluctance from buyers to sustain control means risks remain, and the possibility of a reversal cannot be ignored.

Bond market conditions remain closely tied to price fluctuations, with 10-year Treasury yields hovering around 4.24%. Any adjustments in yield levels could either reinforce or weaken recent price action. With traders keeping a close watch on this relationship, sudden shifts in sentiment are possible, particularly if yields start to retreat or climb unexpectedly.

As month-end approaches, capital flows could introduce unexpected pressure. Positioning adjustments ahead of key data releases frequently bring volatility, and historical patterns suggest that dislocations may emerge in the short-term. The upcoming US PCE price index will likely offer insight into inflation trends. Given the Federal Reserve’s reliance on this data for policy decisions, any deviations from expectations may prompt swift market reactions.

In the days ahead, price stability will depend on whether buyers can maintain momentum and whether external influences, such as bond yields and economic data, align with recent movements. If hesitation among market participants increases, another phase of consolidation may emerge, similar to what was seen between 149.00 and 150.00. Conversely, stronger conviction from buyers could challenge recent seller dominance and shift price action further upward.

With market conditions shifting quickly, awareness of technical and fundamental indicators will be essential. Sharp moves can emerge as liquidity changes near the end of the month, and major data releases could accentuate any existing imbalances. Understanding these dynamics will be key in managing exposure over the coming sessions.

In January, South Africa’s trade balance saw a decline, falling from a surplus of 15.46 billion rands to a deficit of 16.42 billion rands. This shift indicates a notable change in the country’s trade dynamics.

The transition from a surplus to a deficit suggests a decrease in exports or an increase in imports, impacting the overall economic outlook. This trend may have consequences for the South African economy moving forward.

This shift in South Africa’s trade balance, from a surplus of 15.46 billion rands to a deficit of 16.42 billion, is not just a number change—it reflects deeper movements in trade flows. A deficit of this size suggests that either exports have faltered or imports have risen sharply. If exports have weakened, it could mean the global demand for South African goods has softened, potentially due to price shifts in key commodities. If imports have surged, it might point to stronger domestic demand or a reliance on foreign goods that could affect local industries.

For those of us keeping a close eye on changes in trade balance trends, this movement prompts a reassessment of market positions. When a country moves from surplus to deficit, it often puts downward pressure on its currency. If that continues, the value of the rand could face challenges, making imported goods more expensive while giving a boost to exports in the longer term. But short-term volatility is always a concern.

A notable factor worth watching is how global commodity prices are shifting. Given South Africa’s reliance on minerals and metals, any downturn in these markets would weigh on export revenues. In contrast, if imports are rising because of increased infrastructure spending or stronger consumer demand, that could point to a different trajectory for the economy, one that isn’t solely tied to external demand.

For traders in derivatives markets, these numbers require adjustments in strategy. Currency movements could become more pronounced, affecting forward contracts and options tied to the rand. If inflation pressures rise due to costlier imports, bond yields may react, offering opportunities or risks depending on positioning.

One of the key takeaways here is that the balance between imports and exports isn’t just about trade – it’s a reflection of where the economy is heading. When a shift of this scale occurs, it often takes time for markets to fully process its effects. The next few weeks could bring more clarity as further data emerges on whether this is a short-lived adjustment or part of a deeper trend.

The KOF leading indicator index for Switzerland in February registered at 101.7, slightly below the expected 102.0. This data was released by KOF on 28 February 2025.

The previous month’s figure was revised from 101.6 to 103.0. The adjustment indicates a decline in the leading index, with the overall trend suggesting a stable yet subdued momentum in the Swiss economy since last year.

A reading of 101.7 compared to the anticipated 102.0 shows a minor shortfall in expected growth signals. While not a sharp drop, the adjustment from January places last month’s figure notably lower than what had initially been reported. That revision also alters the broader view of recent months, highlighting a less consistent trend than previously thought.

A moderation in forward-looking indicators like this one often suggests that economic momentum is not accelerating as some had hoped. The index gathers input from multiple sectors, and a reading around this level typically reflects steady but restrained expansion. Business sentiment, order books, and production expectations all contribute to the final number, meaning this decline likely hints at softening confidence in future activity.

With the updated figures in mind, restraint may be warranted when assessing near-term commitments based on Swiss economic movement. No dramatic shift is present, but the latest reading may temper expectations of robust activity in the next quarter. Adjustments in prior data can sometimes make current readings more relevant, shifting the perception of whether momentum is holding firm or beginning to wane.

Looking ahead, this development requires monitoring other indicators to confirm whether this is a temporary blip or part of a broader moderation. Reaction across different sectors will provide stronger direction in the coming weeks.

India’s Gross Domestic Product (GDP) growth for the fourth quarter was reported at 6.2%, which fell short of expectations set at 6.3%. This figure reflects the annual performance of the country’s economy during that period.

The economic landscape is influenced by various global and domestic factors, including inflation rates and changes in market demand. Observers are closely monitoring upcoming economic indicators and releases that may further inform the country’s economic direction.

Current market sentiments and performance data indicate fluctuating conditions across different sectors, suggesting a need for ongoing analysis in the face of evolving economic circumstances.

The latest GDP growth figure of 6.2% for India’s fourth quarter came in just below the forecasted 6.3%, underscoring a slightly slower-than-expected pace. While the deviation is marginal, it does give markets a reason to reassess their broader expectations. Given that this number reflects the annualised performance over that stretch of time, it serves as a benchmark for evaluating whether economic momentum is sustaining itself.

Multiple global and local influences are shaping these numbers. Inflation, a persistent concern, continues to affect both consumer activity and business investment. Price stability—or the lack of it—directly feeds into market confidence. Additionally, movements in global trade and supply chain constraints remain factors that we must consider when analysing any trend shifts. The extent to which domestic demand can shield the economy from external pressures is another point of observation.

Because of these variables, traders must remain adaptable. Economic indicators expected in the coming weeks, including inflation printouts and industrial output data, will provide clearer direction. Monitoring these releases ensures that we respond swiftly to new information rather than reacting with delay. The argument, for now, is neither strongly optimistic nor pessimistic—rather, it suggests the need for careful positioning across various derivative instruments.

Current market patterns show inconsistencies between sectors. Some areas have demonstrated resilience in the face of external turbulence, while others remain vulnerable. These imbalances necessitate a detailed approach to evaluating risk. Trends we see today may not persist, making real-time adjustments a necessity.

When analysing upcoming market moves, it is important to factor in how traders and investors are digesting this data. Sentiment often drives short-term price direction, even more so when economic results come in slightly off expectation. The next few weeks will test whether current pricing models have accurately accounted for these developments or if adjustments will come at a sharper pace.

France’s preliminary Consumer Price Index (CPI) for February rose by 0.8%, below the anticipated 1.0% year-on-year. This data was released by INSEE on 28 February 2025, with the previous CPI reading at 1.7%.

The Harmonised Index of Consumer Prices (HICP) showed an increase of 0.9%, compared to the expected 1.2%, and a decline from 1.8% in the previous month. The slowdown in price growth has been largely influenced by adjustments in energy prices, particularly the substantial rise in electricity costs in February 2024.

Additionally, inflation in the service sector reduced from 2.5% in January to 2.1% in February.

The latest figures indicate that inflationary pressures in France have eased more than expected, with both the standard CPI and the HICP showing a slower rate of growth. A key factor in this softer inflation reading is the movement in energy costs, which previously fuelled rising prices. While electricity costs increased substantially a year ago, broader price pressures appear to have lost momentum. A notable slowdown in service sector inflation further supports this observation, reflecting reduced price hikes in areas such as transport and hospitality.

For those closely monitoring price trends, this softer inflation print raises questions about future monetary policy moves. A weaker rise in consumer prices may strengthen the case for adjustments in interest rates, particularly if further data points in the same direction. With inflation trending lower, policymakers might weigh the risk of tightening financial conditions too much.

Market expectations will likely shift in response, particularly for derivatives linked to inflation or interest rates. Lower-than-expected inflation figures can impact bond yields, while traders positioned for higher price growth may need to reassess their stance. If service sector inflation continues to slow, it could further influence forward-looking pricing models.

Beyond headline inflation, sector-specific developments should not be overlooked. The decline in service price growth suggests changing consumer demand dynamics, while energy prices remain a key variable. Labour costs and wage growth trends will be essential to watch, as persistent wage increases could alter inflation expectations going forward.

Further data releases in the coming weeks will either reinforce or challenge this trend. If subsequent figures confirm the same direction, adjustments in expectations across financial markets may become more pronounced. Conversely, any unexpected increases may lead to sharper market reactions, requiring swift recalibration.

India’s infrastructure output rose by 4.6% year-on-year in January, exceeding the previous figure of 4%. Meanwhile, the US Department of Commerce reported a PCE inflation rate of 2.5% for January, with core PCE inflation slightly higher at 2.6%.

Following the release of PCE inflation data, EUR/USD managed to recover to around the 1.0400 region. Simultaneously, gold prices remained low at approximately $2,850 per ounce, as US yields showed a slight bearish trend.

The US labour market displayed resilience despite a slowdown in hiring in January. Additionally, President Trump confirmed that 25% tariffs on Canada and Mexico will take effect on March 4, along with a new 10% tariff on Chinese imports.

India’s infrastructure output posted a 4.6% rise in January compared to the same period last year, a slight improvement from December’s 4% expansion. This suggests that key industrial sectors, including energy and construction materials, are maintaining momentum despite broader global uncertainties. Healthy infrastructure growth often signals sustained domestic demand, which can influence commodities and raw material pricing in the medium term.

Over in the US, the Department of Commerce reported that personal consumption expenditures (PCE) inflation for January stood at 2.5%, with the core measure – which excludes volatile food and energy components – coming in slightly higher at 2.6%. These figures indicate that inflation remains moderate but persistent, reinforcing expectations that monetary policy will stay tight for longer than previously anticipated. This is particularly relevant for those navigating interest rate-sensitive assets, as market pricing of future rate decisions could shift in response.

Following the PCE data release, the euro made up some lost ground against the dollar, rising towards 1.0400. This suggests that traders reassessed the inflation figures in relation to Federal Reserve policy, temporarily boosting risk appetite in currency markets. Meanwhile, gold prices failed to attract demand, staying around $2,850 per ounce. The combination of steady inflation and slightly weaker US yields appears to have kept traders from aggressively buying into safe-haven assets.

The US labour market continues to demonstrate resilience, even as hiring slowed in January. A strong labour market can keep wage growth stable, potentially sustaining inflation at current levels. For those tracking employment data, sustained strength may delay rate cuts, particularly if upcoming reports reinforce this stability.

On the trade policy front, Donald Trump confirmed that 25% tariffs on imports from Canada and Mexico will take effect on 4th March. Additionally, a new 10% tariff on Chinese imports was announced. Market participants will need to assess how businesses respond to these measures, particularly in sectors reliant on global supply chains. With potential knock-on effects on currency valuations and corporate earnings, the fallout from these trade policies may well shape price action in the coming weeks.

Data from INSEE on 28 February 2025 indicates that France’s GDP for the fourth quarter remained unchanged at -0.1% compared to the preliminary estimate. The slight contraction at the end of the year is attributed to changes in inventory and trade.

Overall, the French economy recorded a growth rate of 1.1% for the full year of 2024, which is consistent with the growth reported in 2023.

That the economy shrank slightly in the last three months of the year and yet matched the previous year’s growth overall tells us something about how different sectors moved in opposite directions. Businesses adjusted their stock levels, and trade activity slowed, both of which were enough to keep the final numbers in negative territory for that period. But this did not derail the yearly figure, which remained steady at 1.1%.

Household spending edged up by 0.3% in the fourth quarter, which helped soften the weakness in trade. But this was the slowest rise since the start of the year. Meanwhile, investment fell. These details confirm that consumers still supported demand, though not as much as before, and businesses were more cautious about expanding. That pattern leaves little in the way of surprises—but it sets up expectations that cannot be ignored.

Export numbers weakened, falling by 0.4%, while imports declined further, down 1.2% after a sharper drop of 2.4% in the previous quarter. That gap between exports and imports actually helped prevent the economy from shrinking more. But it raises another question: if trade continues on this path, how much longer can it support growth before becoming a drag instead?

Fabien, the head economist at Banque de France, pointed out that lower demand in key export markets weighed on French trade. At the same time, domestic demand is still playing its part, though not as strongly as before. If investment remains weak and exports do not recover, we may not see much improvement in the quarters ahead.

Another factor is inflation. Consumer prices rose at a slower pace in recent months, which gave households some relief, but businesses are still facing higher costs. Gilles at INSEE noted that lower energy prices helped keep overall inflation in check, yet core inflation—excluding energy and food—has not eased as much. If that trend holds, the squeeze on corporate margins may continue, shaping how firms set prices and wages in the near future.

Meanwhile, the European Central Bank has signalled it is watching inflation closely, but it has not moved to cut rates yet. That means financing conditions remain tight. For firms and individuals relying on credit, borrowing remains expensive, which feeds back into investment and spending decisions. We cannot ignore what this means in the short term, especially if the ECB holds back on cutting rates for longer than markets expect.

Across the labour market, hiring has slowed but not reversed. Wage growth remains above inflation, supporting spending power for now. But if companies start seeing sustained pressure on profits and demand softens further, recruitment decisions could change. That remains a risk heading into the coming months.

With these shifts in trade, inflation, and rates shaping how businesses and consumers act, the next round of economic data will likely confirm or challenge what we have seen so far. If policymakers respond with adjustments of their own, that could alter expectations yet again. We are watching closely.