The President of the United States, Donald Trump, has once again sparked significant movements in the financial markets during early trading early this week. Trump has announced that the increase in import tariffs from Canada and Mexico by 25% will remain effective as of March 4. The threat of an escalating trade war has resurfaced, continuing to affect trading on Tuesday.<\/p>\n
GOLD<\/strong> Today, Gold has retreated to $2,935.03 per troy ounce, likely as a result of profit-taking since no fundamental changes have occurred. Market participants are still wary of the growing risk of a trade war, particularly with signs of economic slowdown in the U.S.<\/p>\n Both factors continue to provide a positive sentiment for Gold in the European trading session.<\/p>\n OIL<\/strong> Trump has noted his role as a mediator in these peace talks. However, market participants believe that significant outcomes from the negotiations are unlikely, leading to short covering of Oil, which has reached a two-month low.<\/p>\n This trend could continue, potentially pushing Oil prices higher during the European session.<\/p>\n EURUSD<\/strong> Trump’s statements regarding the increase in import tariffs have exerted downward pressure on the EURUSD. Moreover, Europe is also expected to be affected by the tariffs on steel and aluminum, set to take effect on March 12. Meanwhile, the European Union has stated that it is preparing a list of U.S. products that will face import tariffs in retaliation.<\/p>\n This negative sentiment is likely to continue influencing EURUSD movements in the European trading session.<\/p>\n GBPUSD<\/strong> The expanding risk of a trade war is also placing pressure on the GBPUSD, which is expected to persist in today’s European trading session.<\/p>\n USDJPY<\/strong> This movement indicates the yen’s resilience, amid speculation that the Bank of Japan may raise interest rates soon. This sentiment will likely continue to impact USDJPY’s performance during the European session.<\/p>\n Nasdaq<\/strong> The President of the United States, Donald Trump, has once again sparked significant movements in the financial markets during early trading early this week. Trump has announced that the increase in import tariffs from Canada and Mexico by 25% will remain effective as of March 4. The threat of an escalating trade war has resurfaced, […]<\/p>\n","protected":false},"author":4,"featured_media":21040,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5170,142],"tags":[5175,5174,5176,5178,5177,5168],"class_list":["post-42717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-summary","category-news","tag-cls10","tag-eurusd","tag-gbpusd","tag-nq","tag-usdjpy","tag-xauusd"],"yoast_head":"\n
Trump’s announcement caused Gold prices to reach an all-time high of $2,956 per troy ounce earlier this week before closing at $2,952.23 per troy ounce.<\/p>\n
Oil prices increased by $0.67 to $70.89 per barrel in early trading earlier this week and further rose to $71.23 per barrel by this afternoon. The rise in oil prices comes ahead of the second phase of peace negotiations between Russia and Ukraine today.<\/p>\n
Profit-taking has led the EURUSD to pull back from its one-month high of 1.05283 earlier this week. The pair closed at 1.04655 on Monday, showing little change compared to Friday’s close.<\/p>\n
Similar to the EURUSD, this currency pair has also reversed after reaching a two-month high of 1.26902 earlier this week. The GBPUSD closed at 1.26217 on Monday, down by 115 points (11.5 pips).<\/p>\n
USDJPY rose by 388 points (38.8 pips) to 149.675 in early trading this week after previously dropping to a level not seen in 11 weeks. Short covering may have triggered the increase in USDJPY, as it climbed to 150.300 before retreating to 149.459 today.<\/p>\n
The Nasdaq dropped 233 index points to 21,427 in early trading this week, continuing a sharp decline from the previous week. The heightened risk of a broader trade war, along with signals of economic slowdown in the U.S., is placing considerable pressure on the Nasdaq, which will be felt at the start of trading in the European session.<\/p>\n