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Traders Caution Heightens Amid Upcoming Risk Events

3 weeks ago

As traders brace for a flurry of risk events in the days ahead, caution prevails across global markets. A key focal point is the upcoming release of the US government’s personal consumption expenditures price index, scheduled for Good Friday, coinciding with the closure of local markets. The anticipation is further fueled by an address from Federal Reserve Chair Jerome Powell on the same day, adding to market uncertainty.

Meanwhile, the offshore yuan extended its gains for a second consecutive day, supported by reinforced efforts from China’s central bank to bolster the currency. Conversely, the yen saw minimal movement following a recent drop to a four-month low against the dollar.

The yen’s trajectory remains uncertain, particularly in light of recent remarks from Japan’s Finance Minister Shunichi Suzuki. Suzuki indicated on Tuesday that the government stands ready to intervene against excessive currency fluctuations, keeping all options on the table.

In broader market movements, oil prices stabilized following their most significant weekly gain, as OPEC+ prepares to reaffirm its commitment to production cuts amidst escalating tensions in the Middle East and Russia. Meanwhile, gold prices remained near record highs, reflecting ongoing market uncertainty and investor appetite for safe-haven assets.

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