English 
Dutch - Nederlands
French - Français
German - Deutsch
Greek - Ελληνικά
Hungarian - Magyar
Italian - Italiano
Polish - Polski
Spanish - Español
Get in touch
- Home
- Getting Started
- Blog
Get in touch
iFOREX Europe uses cookies to improve your browsing experience, personalize ads, analyze traffic, and ensure security. For more information, please visit our Cookie Policy or go to Manage preferences.
21/03/2025 - 08:30 UTCThe US dollar posted some recovery against most major currencies on Thursday as reflected by a 0.34% increase in the USDX on the iFOREX trading platform. Despite the Federal Reserve's continued projection of rate cuts in 2025, the dollar rebounded after markets assessed the possibility that interest rates would remain elevated throughout this year.
Energy prices extended their recent gains, with the two main crude oil benchmarks WTI and Brent up by 2.12% and 1.99% respectively on the iFOREX trading platform. This surge reflects anticipation of reduced supply following fresh U.S. sanctions against Iran and a new OPEC+ output cut agreement. The U.S. Treasury imposed new sanctions on entities supplying Iranian crude to China, including, for the first time, an independent Chinese refiner.
After reaching a three-year high, the Hong Kong 50 index reversed course, falling approximately 2.75% on Thursday and continuing its decline into Friday. This downturn was primarily driven by profit-taking in the previously high-performing technology and internet sectors. Prominent declines included Alibaba's 4.42% drop and XPeng's 7.19% fall, stocks that are listed both on the New York Stock Exchange as well as the Hong Kong Stock Exchange.
Wall Street sentiment shifted back to negative on Thursday primarily driven by revised expectations regarding Federal Reserve interest rate cuts. The Fed's projections of increased inflation and slower growth in 2025, along with concerns about potential tariff impacts, shifted market sentiment, resulting in declines of 0.56% for the US 500, 0.3% for the US 30, and 0.74% for the US Tech 100.
Despite exceeding third-quarter earnings with successful shoe launches, Nike's fourth-quarter revenue forecast, predicting a significant decline, dampened investor enthusiasm and caused the stock price to fall in after-hours trading. The company projects a percentage revenue decline, significantly worse than the 12.22% drop analysts predicted, signaling challenges in maintaining consumer interest amidst growing competition. This negative outlook overshadowed the positive third-quarter results and a 17% revenue decline in China added to investor anxiety. Later in the day, quarterly earnings reports are anticipated from Meituan, Carnival Corp, Miniso and Lufax.
On the cryptos front, Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, experienced declines of 3.02% and 3.61% respectively on Thursday in line with Wall Street. This drop in value reflected heightened economic uncertainty over the U.S. economic outlook, especially under President Donald Trump’s aggressive trade tariff policies. The wider cryptocurrency market also declined, with XRP losing some of the gains it made following the SEC's withdrawal of its case against Ripple.
On Friday, attention will likely turn to Canada’s retail sales numbers the subsequent Eurozone consumer confidence and the Baker Hughes active oil rig count report.
The EUR/USD pair declined for a second straight trading session on Thursday, slipping 0.53% as investors maintained a preference for the safe-haven US Dollar.
Federal Reserve Chair Jerome Powell sought to downplay economic risks stemming from the US administration’s inconsistent tariff signals. While acknowledging that uncertainty has heightened due to shifting trade policies, Powell emphasized that US economic fundamentals remain solid, albeit moderating from recent highs.
Meanwhile, the Philadelphia Fed’s Manufacturing Index for March eased to 12.5 from February’s reading of 18.1, marking a second consecutive decline but outperforming market expectations of 8.5. US Initial Jobless Claims ticked slightly higher to 223,000, just above the previous week’s 220,000 but below the forecast of 224,000. Additionally, US Existing Home Sales surged past expectations, reaching 4.26 million in February—significantly above January’s revised 4.09 million and exceeding forecasts of 3.95 million.
Gold prices edged slightly lower on Thursday as bullish momentum faded following the Federal Reserve’s latest monetary policy decision and escalating tensions in the Middle East.
Despite the Fed maintaining interest rates at the 4.25%–4.50% range for the second consecutive meeting and signaling a slowdown in quantitative tightening (QT), gold failed to gain traction. Fed policymakers acknowledged that while the labor market remains resilient, inflationary pressures persist.
Meanwhile, geopolitical tensions continued to escalate. In Gaza, Israeli airstrikes resulted in at least 91 Palestinian casualties and dozens of injuries. The ongoing conflict adds another layer of uncertainty for global markets, keeping investors on edge.
Oil prices climbed on Thursday after the United States imposed new Iran-related sanctions, adding to renewed geopolitical tensions in the Middle East. The rise in crude prices counterbalanced the strength of the US dollar, which typically pressures commodities priced in the currency.
The US Treasury Department announced new sanctions targeting entities involved in the Iranian oil trade, including, for the first time, a Chinese independent refinery—known as a “teapot” refinery—and vessels supplying crude to such facilities. China remains the largest importer of Iranian oil, and these private refineries play a key role in processing the supply.
Oil markets remain sensitive to escalating geopolitical risks. Israel launched a new ground operation in Gaza on Wednesday, breaking a nearly two-month ceasefire. Meanwhile, the US continued airstrikes on Houthi targets in Yemen following attacks on ships in the Red Sea.
US main stock indices closed lower on Thursday as investor optimism following the Federal Reserve’s commitment to two rate cuts in 2025 lost momentum. Market sentiment remained fragile amid ongoing concerns over trade policy uncertainty and slowing economic growth.
Despite strong gains in the previous session, all three major Wall Street indices hovered near six-month lows as extended selling pressure continued, driven by uncertainty surrounding former President Donald Trump’s tariff policies.
Fresh labor market data released after the Fed meeting suggested continued strength in the US job market, even as potential headwinds from escalating trade tensions and a push to shrink federal government spending loom.
In corporate news, Apple is reportedly looking to overhaul its AI leadership, with Mike Rockwell, the creator of Vision Pro, expected to take a key role in reshaping Siri. The shift comes amid reports that CEO Tim Cook has lost confidence in AI head John Giannandrea.
The materials contained on this document should not in any way be construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument, in any manner whatsoever. Any indication of past performance or simulated past performance included in this document is not a reliable indicator of future results. For the full disclaimer click here.
By