Forex Brief March 18: Can the Risk Rally Push DAX 40 to New Record Highs?
March 18, 2025 | Skerdian Meta
The financial markets have been witnessing a dynamic shift, with the German DAX index potentially heading towards record highs, fueled by a positive change in risk sentiment.
Key Points
- European stock markets, including the DAX, saw improvements, gaining 0.60% amid better market sentiment.
- US retail sales data, though generally weak, exceeded expectations in the control group segment.
- Optimism is returning, with trade advisor Kevin Hassett alluding to potential positive trade tariff developments.
Summary
In the past two days, stock markets reversed positively, with the German DAX edging closer to its recent record peak.
Economic indicators reflected continued economic resilience with US retail data spurring optimism and potentially alleviating some fears surrounding consumer weakness.
Economic Insights
Kevin Hassett suggested potential good news on trade tariffs, specifically concerning Canada and Mexico. Despite persistent market uncertainties, a sign suggesting less harm from tariff reciprocation than originally expected has boosted sentiment.
Opinion & Analysis
With the expectation of upward trends in the Canadian inflation figures—a key indicator of market movements—investors keep a keen eye on central bank decisions.
The market momentum carries profound implications, with risk-sensitive Australian and New Zealand currencies reacting positively to China’s consumer stimulus news.
Markets & Commodities
This week’s surprise surge in gold to over $3,000 pinpoints underlying market anxieties, showcasing a resilient bull run despite a slight end-week pullback.
Cryptocurrency Update
Bitcoin Faces Challenges: In cryptocurrencies, Bitcoin wrestles with the 200-day SMA as resistance after fluctuating due to emerging policy details on cryptocurrency reserves. Ripple (XRP), however, stabilizes with potential bullish momentum visible in candlestick chart patterns.
The financial stages are set, and the expectation spins towards accelerated answers in trade deals and cryptos amidst an inflating economy reality, where even slight policy shifts ripple across markets.
Stay informed on these movements with FX Leaders economic calendar.
