The market movement began to stabilize at the start of the week after experiencing fluctuations the previous week. There are no new updates regarding the import tariff policies enforced by the United States or China. As many are aware, the trade war has once again become a focal point between these two nations, keeping the US dollar under pressure.
Ongoing sentiments about the trade war are expected to impact market movements during the European trading session, alongside several key economic data releases. Here are the details from Trading Central:
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- UK employment change data (Feb) at 13:00 WIB; forecast 95K vs previous 144K
- UK unemployment rate data (Feb) at 13:00 WIB; forecast 4.4% vs previous 4.4%
- Eurozone industrial production data (Feb/month-on-month) at 16:00 WIB; forecast 0.1% vs previous 0.8%
- Germany economic sentiment data (Apr) at 16:00 WIB; forecast 9 vs previous 51.6
GOLD
The price of Gold (XAUUSD) fell by $27.3 or 237 pips on Monday, closing at $3,210.6 per ounce. This decline was prompted by profit-taking after previously hitting a peak of $3,245 per troy ounce.
Today, Gold has rebounded to around $3,232 per troy ounce, indicating that bullish trends remain strong due to the trade war’s potential to hinder global economic growth. Additionally, following the release of US inflation data last week, markets perceive the Fed may cut interest rates more swiftly and aggressively this year.
These sentiments are expected to continue influencing Gold movements during the European trading session.
OIL
Oil prices (CLS10) exhibited volatility at the beginning of last week but concluded trading stagnantly at $61.54 per barrel. Trump’s decision to postpone the increase of import tariffs on electronic products has opened the door to potential trade negotiations between the US and China, creating positive sentiments for Oil.
This sentiment is likely to continue impacting market movements during the European session.
EURUSD
EURUSD faced profit-taking pressure, closing slightly lower at 1.13467 at the start of last week. This profit-taking occurred after EURUSD surged sharply the previous week, reaching its highest level since February 2022.
EURUSD is receiving positive sentiment from the delay of electronic import tariff hikes and the likelihood of the Fed cutting rates more aggressively. This sentiment will likely continue influencing EURUSD trading moves in the European session; however, if economic data from the Eurozone and Germany falls below the forecast, EURUSD could face further profit-taking.
GBPUSD
GBPUSD rose by 978 points (97.8 pips) to 1.31860 at the beginning of last week, marking a streak of five consecutive days of gains. As of today, GBPUSD has extended its climb to 1.32212, the highest it has been in the past six months.
During the European session, the release of UK labor market data could affect its movement. Should this data come in worse than forecasted, there is a potential for GBPUSD to experience profit-taking.
USDJPY
USDJPY decreased by 484 points (48.4 pips) to 142.996 during Monday’s trading, nearing a six-month low. USDJPY also recorded a three-day consecutive decline, pressured by expectations that the Fed will cut interest rates more quickly and aggressively this year. This sentiment will likely continue to influence USDJPY movements in the European session.
Nasdaq
The Nasdaq exhibited considerable volatility at the start of last week before closing at 18,902, an increase of 89 index points. The positive sentiment for the Nasdaq was bolstered by Trump’s postponement of the reciprocal policy last week. Furthermore, his deferral of import tariff increases on electronic products added to this optimistic outlook.
There have been no recent developments regarding the import tariff policies, keeping the sentiment towards Nasdaq generally positive.
