As we head into Monday, March 10, 2025, global forex markets are gearing up for a volatile session, with key economic events from the U.S., U.K., Canada, and Japan shaping price movements. Traders will closely monitor inflation data, consumer sentiment, and central bank statements to gauge the market direction. The U.S. dollar remains in focus as investors react to mixed economic reports and upcoming announcements.
In the currency markets, the GBP/USD pair showed notable volatility, reacting to the latest U.K. GDP and trade balance figures. Meanwhile, USD/CAD experienced a sharp sell-off, driven by the Bank of Canada’s rate decision and Canada’s employment data. USD/JPY remained choppy as traders assessed Japan’s GDP report and risk sentiment.
GBP/USD
Technicals in Focus
The GBP/USD pair showed significant volatility over the last trading session, climbing to a high near 1.2945 before retracing slightly. The price action suggests a mixed sentiment, with initial downward pressure giving way to a strong recovery.
On the technical side, the MACD is hovering around the zero line, indicating a lack of strong momentum in either direction. The Stochastic Oscillator is moving into overbought territory, signaling possible resistance ahead. The 14-day RSI is also neutral, reflecting the pair’s current consolidation phase.
Trading Strategy: Neutral to Buy
- Buy above 1.2920-1.2940, targeting 1.2970-1.3000, with a stop loss below 1.2890.
- Alternatively, sell below 1.2890, with targets at 1.2850-1.2820, placing stops above 1.2925.
USD/CAD
Technicals in Focus
The USD/CAD pair exhibited sharp movements, with a notable drop before recovering slightly. The currency pair fell steeply near 1.4250, driven by Canadian economic data, but later regained ground towards 1.4370.
From a technical perspective, the MACD shows bearish momentum easing, suggesting a potential for consolidation or reversal. The Stochastic Oscillator is approaching neutral levels, and the 14-day RSI is recovering from oversold conditions, signaling a possible bounce.
Trading Strategy: Neutral to Buy
- Buy above 1.4370-1.4400, targeting 1.4430-1.4470, with a stop loss below 1.4340.
- Alternatively, sell below 1.4340, with targets at 1.4300-1.4270, setting stops above 1.4375.
USD/JPY
Technicals in Focus
The USD/JPY pair saw erratic movement, trading between 147.00 and 148.20 as market participants reacted to mixed signals from U.S. economic data and risk sentiment.
Technically, the MACD is slightly bullish, reflecting an attempt at recovery. The Stochastic Oscillator is climbing but remains within a neutral range, and the 14-day RSI is nearing the mid-level, indicating indecisiveness in price direction.
Trading Strategy: Neutral to Buy
- Buy above 148.00, targeting 148.50-149.00, with a stop loss below 147.60.
- Alternatively, sell below 147.60, with targets at 147.20-146.80, setting stops above 148.00.
Market Outlook
Looking ahead, traders will focus on U.S. NY Fed Inflation Expectations, Michigan Consumer Sentiment, and crude oil inventory data for direction on USD pairs. The British pound will be influenced by BRC Retail Sales Monitor, while the Canadian dollar’s movements may depend on Wholesale Sales data and oil price fluctuations.
Volatility is expected to persist, with key levels being tested across major pairs. Traders should remain cautious and monitor economic releases for potential breakout opportunities.