Gold’s price (XAU/USD) turns flat to $2,915 at the time of writing on Wednesday ahead of the United States (US) Consumer Price Index (CPI) release for February. Market consensus is for a deceleration in all inflation measures, both monthly and yearly gauges. However, many analysts and economists have commented that the current US tariff approach will be inflationary for the US, which could trickle through in the numbers.
EUR/USD corrects to near 1.0890 in North American trading hours on Wednesday after the release of the United States (US) Consumer Price Index (CPI) report for February, which showed that inflationary pressures grew at a slower-than-expected pace.
European Central Bank (ECB) Governing Council member Gediminas Šimkus said on Wednesday that “we will see if we cut rates or pause in April.” Further comments It is irrational to commit to future rate decisions.
The NZD/USD pair struggles to capitalize on the overnight bounce from a multi-day low, around the 0.5680-0.5675 region and attracts fresh sellers on Wednesday amid a modest US Dollar (USD) uptick.
European Central Bank (ECB) President Christine Lagarde said on Wednesday that they cannot ensure that inflation will always be at 2% but added that they must set the monetary policy so it converges to 2%, per Reuters.
Global risk sentiment continued to sour yesterday as President Trump announced he’d double tariffs on Canadian steel and aluminum to 50%, and later pulled the threat as Ontario suspended a 25% surcharge on electricity exports.
EUR/USD received some extra support yesterday from the news that Ukraine agreed to a 30-day truce with Russia, but has retreated from the 1.095 highs to just under 1.090 as the dollar started to recover and the EU announced €26bn worth of retaliatory tariffs against the US.
Japan’s Chief Cabinet Secretary Yoshimasa Hayashi noted on Wednesday that “I would like to have close communication with the US over auto tariffs.” Additional quotes It's regrettable that the US went ahead with steel and aluminum tariff despite our request for exemption.
Here is what you need to know on Wednesday, March 12: Following a volatile American session that was dominated by tariff headlines on Tuesday, financial markets quiet down early Wednesday.
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, recovers to near 103.55 after bouncing off four-month lows around 103.20.
The Bank of Japan (BoJ) Governor Kazuo Ueda said on Wednesday that he is “very worried about uncertainty over overseas economy, prices.” Additional quotes Underlying inflation still remains below 2%.
UK Trade Minister Jonathan Reynolds said on Wednesday that they are “negotiating a wider economic agreement to eliminate additional tariffs.” Further comments It's disappointing that the US has imposed global tariffs on steel and aluminum.
European Commission President Ursula von der Leyen said on Wednesday that the European Union (EU) has launched 'swift and proportionate countermeasures' on US imports in the EU in response to steel tariffs.
The USD/MXN pair struggles for a firm intraday direction on Wednesday and oscillates in a narrow trading band, around the 20.2790-20.2795 region through the Asian session.
Gold price (XAU/USD) trades near the weekly high during the Asian session on Wednesday and looks to build on the previous day's goodish rebound from the $2,880 region, or a one-week low.
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