Equities and dollar volatile, metals resume downtrend

03/03/2021

Stock markets are seen rising again on Wednesday, having corrected lower on Tuesday. Volatility remains elevated as US yields fail to decline, and this volatile environment is good for short-term traders.

Meanwhile, according to the Caixin services purchasing managers' index, China’s services sector activity grew at its slowest pace in ten months in February. The index came out at 51.5, down from 52.0 previously.

Later in the day, services PMIs are due across the Eurozone, but volatility should not be elevated unless there are some huge revisions.

Investors will also pay attention to the US ADP employment report, with forecasts expecting 177,000 new jobs, near January's 174,000.

Moreover, the ISM services for February will be released, which is a major indicator for the US economy. 

The EURUSD pair tested the 1.20 level to the downside yesterday, but a massive wave of buying emerged, and the euro rose 100 pips throughout the rest of the day. 

In the precious metals sector, gold and silver staged a comeback yesterday, but fresh selling reemerged again, with gold down half a percent during the London session, trading near 1,725 USD.
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