Daily Global Market Update – 25th March, 2025

Japanese Yen Weakens to Three-Week Low Against USD

The Japanese yen has depreciated to its lowest level in three weeks against the US dollar. A combination of dovish monetary policy expectations from the Bank of Japan and a relatively stronger greenback has contributed to this decline. However, the lack of follow-through selling suggests that traders are waiting for further cues, including US economic data and any policy shifts from the BOJ.

Australian Dollar Finds Support as RBA Holds Steady

The Australian dollar is showing resilience as traders anticipate that the Reserve Bank of Australia (RBA) will keep interest rates unchanged in its April meeting. While inflation remains a concern, the RBA has signaled a cautious approach to further tightening, which is providing near-term support for the currency. Market participants are closely watching domestic labor data and global risk sentiment for additional direction.

Gold Consolidates Above $3,000, Limited Downside Risk

Gold prices are holding steady above the $3,000 mark, with downside risks appearing limited despite some consolidation. Investors continue to seek gold as a safe-haven asset amid ongoing geopolitical concerns and inflationary pressures. While profit-taking has caused some price fluctuations, strong demand for the metal is keeping it well-supported. Traders are now looking toward US Federal Reserve commentary for potential signals on future interest rate policy, which could impact gold’s trajectory.

EUR/GBP Struggles Near Three-Week Low

The EUR/GBP pair is consolidating above the mid-0.8300s, struggling to regain momentum after touching a three-week low on Monday. The euro remains under pressure due to economic uncertainty in the Eurozone, while the British pound is finding some stability on expectations of a steady Bank of England policy. Market focus is on upcoming economic releases, including UK inflation data, which could influence the pair’s next move.

Broader Market Context

Global markets remain sensitive to monetary policy shifts and economic data. Equity markets are mixed as investors assess inflation trends, central bank outlooks, and geopolitical risks. The US dollar continues to show strength against weaker currencies, while commodities like gold and oil remain volatile amid supply concerns and shifting risk sentiment.