EUR/USD rose to a five-month high near 1.10 on Tuesday after positive signals from a "historic" Trump-Putin call supporting a 30-day ceasefire in Ukraine. Germany's parliamentary approval of expanded fiscal stimulus further boosted the euro. EUR/USD eyes resistance at 1.1000-1.1070, with immediate support near 1.0897.

Dollar Softens Ahead of Fed Decision

The dollar weakened slightly as Treasury yields eased despite upbeat U.S. economic data, including stronger February import prices and housing starts. Investors remained cautious before Wednesday’s Federal Reserve decision, anticipating steady rates but possible adjustments in balance sheet policy.

Sterling Breaks Above 1.30

GBP/USD capitalized on dollar weakness, breaking through 1.30 and targeting November highs around 1.3046. However, the absence of strong fundamental drivers limits further upside, with EUR/GBP forming a possible double-bottom, signaling potential euro strength ahead.

Yen Stabilizes Amid Market Caution

USD/JPY found stability near 149.00, supported by safe-haven flows amid lower Treasury yields and declining equities. Traders remain cautious ahead of Wednesday's Bank of Japan decision, watching Governor Ueda's comments closely for signals on policy shifts.

Commodity Markets Mixed

Gold rose 1.16%, driven by geopolitical concerns, while oil prices fell 1% on speculation of easing Russian sanctions. Copper surged nearly 1% on tariff-related supply worries.

Equities Slide on Tech Weakness

The S&P 500 fell 1.01%, weighed by declines in large-cap technology stocks as investors trimmed positions before central bank announcements.

Markets remain cautious, anticipating significant volatility around key central bank meetings and ongoing geopolitical developments.