Forex Today: Gold renews record-high above $3,000, Canadian Dollar awaits inflation data

Here is what you need to know on Tuesday, March 18:

Gold benefits from escalating geopolitical tensions and trades at a new record-high above $3,000 early Tuesday. The European economic calendar will feature Economic Sentiment data from Germany and Euro area Trade Balance readings. In the second half of the day, Industrial Production and housing data from the US, alongside February inflation figures from Canada will be watched closely by market participants.

Israeli Prime Minister Benjamin Netanyahu's office stated on Tuesday that Israel resumes military operations against Hamas across the Gaza Strip, per Reuters. "From now on, Israel will act against Hamas with increasing military force," Netanyahu further added. Meanwhile, US President Donald Trump said that they will hold Iran responsible for any attacks carried by the Houthis after the group launched an attack comprising 18 ballistic and cruise missiles, as well as drones, targeting the USS Harry S Truman aircraft carrier on Sunday. In response, the US reportedly carried out new airstrikes on the Red Sea port city of Hodeidah and Al Jawf governorate north of the capital Sanaa on Monday. After gaining about 0.5% on Monday, Gold continues to push higher and was last seen trading at a fresh all-time high near $3,020.

The US Dollar (USD) Index edged lower following a bullish opening in Wall Street on Monday and closed the day in negative territory. In the European morning on Tuesday, the index holds steady at around 103.50, while US stock index futures lose between 0.2% and 0.3%.

USD/CAD lost more than 0.5% on Monday and dropped below 1.4300. The pair clings to small recovery gains near 1.4300 to begin the European session. On a yearly basis, the Consumer Price Index (CPI) in Canada is forecast to rise by 2.1% in February, following the 1.9% increase recorded in January. 

EUR/USD capitalized on the USD weakness and closed above 1.0900 on Monday. The pair fluctuates in a tight channel at around 1.0920 early Tuesday.

GBP/USD rose more than 0.4% on Monday and touched its highest level since early November near 1.3000. In the European morning, the pair stays in a consolidation phase at around 1.2980.

USD/JPY continues to push higher after posting gains on Monday and trades at a two-week-high above 149.70. Speaking at a news briefing on Tuesday, Japan's Finance Minister Katsunobu Kato said that bond markets should decide on rate moves after the 40-year government debt yield briefly jumped to a record high.