empty
13.03.2025 10:04 AM
Trump and His Policies Remain the Focus of the Markets (There Is a Chance of a Corrective Decline in EUR/USD and GBP/USD)

Investors seem to have understood that Donald Trump tends to follow a pattern of making two steps forward and one step back when it comes to his economic and geopolitical strategies. This pattern is particularly evident in his unprecedented pressure on key economic partners, which has caught the attention of financial markets.

Just as markets began to calm on Wednesday following the release of the U.S. inflation report—showing a greater-than-expected slowdown in inflation both annually and monthly—Trump issued a warning about potential additional tariffs on European goods. This came in response to retaliatory measures from the EU and Canada regarding existing U.S. trade barriers.

Commerce Secretary G. Lutnick also indicated that Trump would impose protective trade measures on copper, similar to the actions taken previously with steel and aluminum imports. He reiterated that mutual tariffs are set to take effect next month, further contributing to uncertainty in global markets.

The inflation report initially lifted investor sentiment, fueling hopes that the Federal Reserve, observing slowing inflation growth, might decide to cut interest rates. This temporarily supported local stock indices, but the effect was short-lived. However, the impact of tariffs has yet to materialize, and inflation may rise again in the coming months.

Amid such extreme uncertainty regarding the U.S. economy and geopolitical developments, gold has regained demand, surging toward its recently reached high and trading above $2,940.00. The U.S. dollar resumed its decline, though it remains above 103.00 on the ICE index. This is mainly due to the euro losing its upward momentum after a significant recent rally, given its substantial weight in the dollar's basket of major currencies.

What to Expect from the Markets Today?

Considering the current situation, where the main newsmaker remains the U.S. president, we can expect continued negative trends in U.S. stock markets, pressure on the dollar in the Forex market, and consolidation within wide sideways ranges in the cryptocurrency market. Given the ongoing uncertainty surrounding the outcome of Trump's trade wars, investors are unlikely to react fully to economic data releases. Under different circumstances, such data would have triggered the active buying or selling of assets in financial markets.

This image is no longer relevant

This image is no longer relevant

Forecast for the Day:

EUR/USD – The pair is losing its bullish momentum after reacting to news from the EU and Germany. A drop below 1.0870 could lead to a corrective decline to 1.0780.

GBP/USD – The pair is also losing its upward momentum. A fall below 1.2945 could trigger a corrective decline to 1.2865.

Pati Gani,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

A New Problem Rises for America – The Debt Ceiling (Expecting #SPX and #NDX to Resume Their Decline After a Likely Short-Term Recovery)

The confrontation between the U.S. and the EU has entered a new phase. The U.S. president is taking a hardline approach toward Europe, effectively following a "tit for tat" strategy

Pati Gani 14:06 2025-03-14 UTC+2

USD/JPY: Analysis and Forecast

The Japanese yen is losing ground today. Positive news on U.S.-Canada trade negotiations and reports that Democrats have secured enough votes to prevent a U.S. government shutdown are improving global

Irina Yanina 13:33 2025-03-14 UTC+2

XAU/USD: Analysis and Forecast

Gold is consolidating after reaching a new all-time high. Concerns over U.S. President Donald Trump's aggressive trade policy and its impact on the global economy continue to drive demand

Irina Yanina 10:08 2025-03-14 UTC+2

What to Pay Attention to on March 14? A Breakdown of Fundamental Events for Beginners

There are few macroeconomic events scheduled for Friday, and none of them are significant. The UK will release reports on GDP and industrial production, but strong figures are not expected

Paolo Greco 07:05 2025-03-14 UTC+2

GBP/USD Pair Overview – March 14: The Last Day of the Week as a Mere Formality

On Thursday, the GBP/USD currency pair also began a slight downward correction. While the pound did not depreciate significantly, explaining why it rose for two weeks is difficult. Of course

Paolo Greco 02:39 2025-03-14 UTC+2

EUR/USD Pair Overview – March 14: Maybe That's Enough?

The EUR/USD currency pair finally began to decline on Thursday, but once again, this movement was not linked to macroeconomic factors or fundamental events. It wasn't even related to Donald

Paolo Greco 02:39 2025-03-14 UTC+2

EUR/USD: A Southern Impulse That Should Not Be Trusted

On Thursday, the EUR/USD pair reached a three-day low of 1.0823 but did not break into the 1.07 range, as the downward momentum gradually faded. The EUR/USD pair is currently

Irina Manzenko 23:55 2025-03-13 UTC+2

Euro Faces a Potential Coup d'Etat

The Green Party responded to Friedrich Merz's call for a coalition between the CDU and the Social Democrats, aimed at abolishing the fiscal brake, with a strong rebuttal: "We don't

Marek Petkovich 23:45 2025-03-13 UTC+2

U.S. Inflation Brings Relief to the Fed but Not to the Markets

The euro and pound showed little reaction to news that consumer prices in the U.S. grew at their slowest pace in four months in February—a welcome sign for American households

Jakub Novak 11:14 2025-03-13 UTC+2

Euro Faces Some Challenges

The European currency has encountered some difficulties in its upward movement following yesterday's speech by the European Central Bank (ECB) President. "The eurozone economy is facing exceptional shocks caused

Jakub Novak 10:39 2025-03-13 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.