FOREX TODAY: AHEAD OF SIGNIFICANT RISK OCCURRENCES, PMI DATA COULD ALERT MARKETS.

WHAT YOU SHOULD BE AWARE OF ON TUESDAY, MARCH 5 IS AS FOLLOWS:

Major currency pairings are still trading in familiar ranges early on Tuesday after the erratic trading on Monday. The US economic docket for the American session will include the factory orders data for January and the ISM Services PMI survey for February. Final updates to the February PMI for the US, Germany, the UK, and the EU will also be released by S&P.

The semi-annual Monetary Policy Report by Federal Reserve Chairman Jerome Powell will be presented on Wednesday and Thursday. On Thursday, the European Central Bank will make policy announcements, and on Friday, the US Bureau of Labor Statistics will issue the February jobs report.

Monday's first half saw the US Dollar (USD) struggle to gain traction against its competitors. Nonetheless, the dollar managed to retain its ground thanks to Wall Street's gloomy opening, and the USD Index (DXY) ended the day essentially unchanged. Tuesday morning in Europe, DXY trades slightly higher but remains below 104.00. In the interim, the benchmark 10-year US Treasury bond rate remains unchanged at 4.2%, while US stock index futures are down between 0.3% and 0.5%, suggesting a cautious attitude in the market.

THE CURRENT US DOLLAR PRICE

The US dollar's (USD) percentage change compared to a list of major currencies is displayed in the table below. When compared to the Australian dollar, the US dollar was the strongest.

The major currencies' percentage movements relative to one another are displayed on the heat map. The quotation currency is selected from the top row, and the base currency is selected from the left column. For example, the percentage change shown in the box will indicate EUR (base)/JPY (quote) if you select the Euro from the left column and proceed along the horizontal line to the Japanese Yen.

Gold gained bullish momentum and continued its advance to a new 2024 high above $2,100 on Monday, rising more than 1.5% daily despite the erratic behavior observed in the foreign exchange markets. XAU/USD stays above $2,110 during the early European trading session.

The price of gold is nearing a multi-month top, and investors are waiting for additional signals regarding the Fed's plan to reduce interest rates.

Monday's closing price of EUR/USD was somewhat higher, but early on Tuesday, it fell back to the 1.0850 region. Later in the session, Eurostat will issue January's Producer Price Index (PPI) statistics.

Early on Tuesday, Japanese data revealed that the Tokyo Consumer Price Index increased from 1.8% in January to 2.6% in February on an annual basis. Over the same period, the Tokyo CPI ex-Food and Energy decreased somewhat from 3.3% to 3.1%. In response to these readings, the USD/JPY did not move immediately; it was last observed trading sideways at 150.50.

China's Premier Li Qiang stated that the country's economic recovery does not yet have a strong basis during his speech at the National People's Congress (NPC) annual meeting on Tuesday. China is anticipated to establish a 5% growth target for 2024, according to Reuters. During Asian trading hours, there was bearish pressure on the AUD/USD pair. At 0.6480, the pair was last seen losing about 0.5% on the day.

Monday's trading session saw the GBP/USD pair close in the green for the second straight day, although it later turned back after hitting resistance around roughly 1.2700. Early on Tuesday, the pair continued to be vulnerable and moved closer to 1.2670.