The February payrolls report emerged as anticipated, signaling a steady yet unspectacular pace in job creation. Investors continue to await clarity regarding the Trump administration's tariff policies. President Trump has delayed tariffs affecting Canada and Mexico under the United States-Mexico-Canada Agreement (USMCA), sparking speculation that these levies may ultimately be diluted. Meanwhile, gold traded lower at approximately $2,900 on Monday, while the U.S. dollar struggled to regain footing after a significant drop last week.
U.S. stocks persist in their underperformance compared to global counterparts, reflecting widespread investor skepticism over President Trump's economic strategies. The failure of the dollar to rebound following the payrolls report added to the ongoing market unease. On the other hand, the Eurozone's Sentix Investor Confidence index showed improvement, rising to -2.9 in March from -12.7 in February, thereby lifting sentiment toward the Euro.
The EUR/USD currency pair traded positively near 1.0850 on Monday, buoyed by this renewed confidence. The contrasting fortunes of these currencies highlight the complex interplay of economic and geopolitical factors influencing global markets.
Consumer price inflation, which had been robust in 2025, showed signs of cooling in February. The core consumer price index is projected to have advanced by 0.27% during the month, indicating a moderation in inflationary pressures. This development comes as investors navigate the uncertain terrain of trade policies and their potential impact on economic growth.