Investors worldwide are bracing themselves for crucial developments related to U.S. President Trump's reciprocal tariff plan and Federal Reserve Chairman Jerome Powell's impending testimony. Despite this, global stock markets showed resilience, disregarding initial worries about tariffs. On Monday, President Trump enforced a 25% levy on steel and aluminum imports, effective late that night.
The S&P 500 and Eurostoxx 50 indices are projected to open lower today, reflecting cautious investor sentiment. Meanwhile, the GBP/USD pair is trading in negative territory at approximately 1.2350, struggling to gain upward momentum. The ongoing adjustments in the currency market highlight investor uncertainty amid broader economic shifts.
Gold, which recently hit a record-high of $2,942 during the Asian session on Tuesday, experienced a downward correction. However, it remains stable above the $2,900 mark. This modest decline is attributed to a slight strengthening of the USD, prompting some traders to take intraday profits. The focus now shifts to Fed Chairman Powell's testimony and its potential influence on market dynamics.
Across the Atlantic, the EUR/USD pair is maintaining small daily gains above the 1.0300 level on Tuesday. The slight upward movement suggests a cautious optimism among traders, as they navigate the evolving economic landscape.