A Reuters poll revealed that the Bank of Mexico, also known as Banxico, is expected to keep interest rates steady at 7% at the March 26 meeting amid concerns about the Middle East war. 🔗 Source 💡 DMK Insight Banxico’s decision to hold rates at 7% is a strategic move amid geopolitical tensions, and here’s why that matters: Keeping interest rates steady signals a cautious approach to economic stability, especially with the ongoing Middle East conflict potentially impacting global markets. For traders, this means that the Mexican peso could remain relatively stable in the short term, but volatility might spike if geopolitical tensions escalate further. Watch for any shifts in inflation data or economic indicators leading up to the March 26 meeting, as these could influence Banxico’s future decisions. If inflation pressures mount, we could see a more aggressive stance from the central bank, which would affect not just the peso but also related assets like Mexican government bonds. On the flip side, if the situation in the Middle East stabilizes, Banxico might have room to maneuver, potentially leading to a rate cut later in the year. Keep an eye on the 7% level as a psychological barrier; a break below could signal a shift in market sentiment. Overall, traders should monitor geopolitical developments closely as they could have immediate implications for currency pairs involving the peso. 📮 Takeaway Watch for inflation data and geopolitical developments leading up to March 26; a stable 7% rate could mean short-term stability for the peso.

Silver price (XAG/USD) retreats late in the North American session, down by over 6.80% in the day, poised to finish the week with losses of more than 15.70%, posting its second-largest weekly loss since the one that ended down 17.39% on January 30. At the time of writing, XAG/USD trades at $67.89. 🔗 Source 💡 DMK Insight Silver’s sharp drop of over 6.80% today signals a critical shift in market sentiment. With losses exceeding 15.70% for the week, this marks a significant trend reversal, reminiscent of the volatility seen in late January. Traders should be cautious; this kind of movement often leads to increased volatility in correlated assets like gold (XAU/USD), which could also see pressure as investors reassess their positions. The key levels to watch are around the recent lows, as a break below these could trigger further selling. On the flip side, if silver finds support, it might present a buying opportunity for those looking to capitalize on potential rebounds. Keep an eye on the daily charts for any signs of stabilization or reversal patterns, as these could indicate a shift in momentum. 📮 Takeaway Watch for silver to hold above recent lows; a break could signal further declines, while support might offer a buying opportunity.

The USD is pushing higher to kick off the Friday session. Stocks are trading lower, yields remain stubbornly elevated with the 10-year hovering near 4.30%, and oil prices are choppy but modestly lower.In today’s video, I break down the three major currency pairs from a technical perspective—highlighting the bias, key risks, and the levels that matter most heading into the session.For EURUSD, the pair surged higher yesterday, breaking above the 100-hour MA, the 200-hour MA at 1.15386, and a key swing area between 1.1542 and 1.1549. That upside momentum extended toward the 38.2% retracement of the move down from the February high, with price reaching 1.1615 before sellers stepped in aggressively, driving a sharp rotation lower into the close.That downside momentum carried into today’s session, with price moving back toward the 200-hour MA (now at 1.15286). The low reached 1.1535 before finding buyers and bouncing modestly.The broader range is now clearly defined:Resistance: 38.2% retracement at 1.1608Support: 200-hour MA at 1.15286In between, a near-term swing area between 1.1542 and 1.1555 will act as a key battleground. Holding above keeps buyers in play; a move below shifts control back to the sellers.For USDJPY, the key barometer today is the cluster of moving averages—the 200-hour MA at 158.90 and the 100-hour MA at 158.96. The price rebounded into that zone earlier today and, once again, found willing sellers leaning against the resistance.Yesterday’s move was telling. The pair broke below both of those MAs, along with a key channel trendline, accelerating the downside momentum to a low near 157.50. That shift tilted the near-term bias more bearish.For today, 158.55 is the short-term bias-defining level.Below 158.55, sellers maintain control, and the rejection near the MA cluster gains credibility.Above 158.55, the downside momentum stalls, and a retest of the 100- and 200-hour MAs near 158.90–158.96 becomes more likely.In short, the MA cluster above remains a ceiling for now—but only if sellers can keep price below 158.55.For GBPUSD, the pair surged higher yesterday, breaking above both the 100-day MA at 1.3397 and the 200-day MA at 1.3434, before stalling at the next key target—the 50% retracement of the move down from the February high at 1.3465.From there, the price rotated lower. The initial move back below the 200-day MA found support at the 100-day MA, but the rebound stalled once again near the 200-day MA, where sellers leaned. That selling pressure carried into the European session today, pushing the pair below the 100-day MA and down to a low of 1.3362.However, buyers have stepped back in, and the price is now rebounding toward the 100-day MA (currently near 1.3387).That level will be the key barometer for the day:Above 1.3387, buyers regain control and can target a move back toward the 200-day MA at 1.3434.Below 1.3362, sellers take back control, with the next downside target at the 200-hour MA near 1.3349.In short, the battle around the 100-day MA will set the tone for GBPUSD today. This article was written by Greg Michalowski at investinglive.com. 🔗 Source 💡 DMK Insight The USD’s upward momentum signals potential shifts in forex trading strategies as stocks dip and yields stay high. With the 10-year yield near 4.30%, traders should be cautious about how this affects risk sentiment. A stronger dollar typically pressures commodities like oil, which is already showing volatility. If the USD continues to gain, we might see further declines in stock prices, particularly in sectors sensitive to interest rates. Keep an eye on major currency pairs; if the USD maintains its strength, it could lead to a bearish outlook for EUR/USD and GBP/USD. The interplay between yields and the dollar is crucial right now, especially as we head into the weekend, where liquidity can shift dramatically. Watch for key levels in the USD index—if it breaks through recent highs, it could signal a stronger trend. Also, monitor oil prices closely; any significant moves could impact inflation expectations and, in turn, Fed policy. The real story is how long this dollar strength can last amid rising yields and what that means for broader market sentiment. 📮 Takeaway Watch the USD index for a potential breakout; if it holds above recent highs, expect further pressure on stocks and commodities.

Strong growth will be supported by government’s supply side policiesHearing AI will augment workers, not replace themI am still concerned about the jobs marketI always like to highlight the word ‘still’ in central bank speak because it’s almost always a tell that they’re losing faith in a position. Bowman has been a dove and advocating for rate cuts but since she’s been ruled out of the Fed chair running, she’s been tip-toeing away from that position and back towards her usual hawkish leanings. This article was written by Adam Button at investinglive.com. 🔗 Source 💡 DMK Insight The recent commentary on government supply-side policies hints at a potential shift in economic dynamics, which traders need to watch closely. When central bank officials express concern about the jobs market, especially using terms like ‘still,’ it signals a possible loss of confidence in their previous outlooks. This could lead to adjustments in monetary policy that directly affect interest rates and, consequently, the forex markets. If the jobs market continues to show weakness, we might see a dovish pivot from central banks, which could weaken currencies like the USD against stronger economies or safe-haven assets like gold. Traders should keep an eye on employment data releases and central bank statements for any signs of policy shifts. If we see a significant drop in job creation or rising unemployment claims, it could trigger a sell-off in riskier assets and a flight to safety. Watch for key levels in the USD and gold; a break below certain support levels could indicate a stronger trend in those assets. The next jobs report will be crucial—mark your calendars and prepare for volatility. 📮 Takeaway Monitor upcoming employment data closely; a weak report could shift central bank policy and impact USD and gold significantly.