The first two weeks of March will be massive for trading forex. We highlight the four factors that will drive major markets.

The EUR continues to perform well against other major currencies. With the upcoming ECB monetary policy meeting, we expect this to continue.

The Bank of England has joined the Fed in hiking by 75 basis points. However, this looks to be a dovish hike amid dissenting voters and a bid to rein in market expectations.

This week is heavy on economic data coming out from several corners of the world – here’s what to look for.

The Reserve Bank of Australia (RBA) is in the spotlight as it gears up for its upcoming meeting on Tuesday. Analysts are divided on whether there will be a 25 basis points (bps) rate hike, or if the RBA will maintain the current rate of 4.10%.

Looking back at the past week, it seems that most asset classes were stuck in their recent ranges, except for DXY which finally broke out of the range, closing above 102.

The Bank of England is the central bank that makes monetary policy maintain price decisions for the United Kingdom. Its primary objective is to e stability.

A decisive rebound in equities has come as markets look beyond the banking crisis. The prospect of lower interest rates leaves them well-positioned to rally.

A rally is a sustained positive move in price, in bull or bear markets. Rallies can last for a few minutes to several months or years, based on trading style.

As the US banking crisis has soured risk appetite, and the Federal Reserve has turned more dovish, this leaves gold primed to retest the highs.

The turmoil in the past week amid a banking crisis in the US and a broader hit to market confidence will likely mean an earlier end to monetary policy tightening. The FOMC meeting will likely give further indication of this.

The risk-reward ratio helps to understand how much you can potentially earn for every 1 USD invested. If the reward is too low vs. the risk, it’s not a good trade, and vice versa.