The economic landscape in the United States is witnessing a series of significant developments, as the timing of European Union measures remains unclear. Former President Donald Trump announced intentions to implement a 25% tariff on Canada and Mexico next Tuesday. Meanwhile, the US personal consumption price index met market expectations, and the Federal Reserve is likely to keep the Fed Funds rate steady in March. However, there is growing confidence that an easing may occur later this year, with the probability of two or more rate cuts before the year's end climbing to 80%.
In January, personal disposable income saw a monthly increase of 0.9%, while spending decreased by 0.2%. These figures illustrate a shift in consumer behavior as Americans opt to save rather than spend, leading to a savings rate of 4.6%—a six-month high compared to last year's mid-2022 rate of 2%.
Gold prices have also garnered attention, trading at their lowest point in three weeks, below $2,840. The uncertainty surrounding the Trump administration's trade policy has impacted the XAU/USD, which appears set to break its eight-week winning streak. This volatility reflects broader concerns in the market as investors react to shifts in policy and economic indicators.
The core index's annual growth rate decreased from 2.9% to 2.6%, offering a hint at moderated inflation pressures. Retail investors, however, continue to face challenges, with 77.37% of accounts losing money when trading Contracts for Difference (CFDs) and Spread Betting. This underlines the inherent risks associated with these financial instruments amid fluctuating market conditions.