The AUD/USD currency pair is experiencing a downturn as financial markets grapple with the looming threat of new US tariffs and significant geopolitical developments. Meanwhile, market participants eagerly await the Institute for Supply Management's (ISM) release of the February US Manufacturing Purchasing Managers' Index (PMI) slated for this Monday. This data could provide further insights into the US economic landscape amid shifting global trade dynamics.
Recent data from the Euro area indicates a rise in core Harmonized Index of Consumer Prices (HICP) inflation by 0.6% on a monthly basis for February, reversing a 0.9% decline observed in January. This uptick in inflation comes as European politicians intensify their support for Ukraine in an effort to stabilize the geopolitical climate. This political backdrop, coupled with economic indicators, is shaping the risk sentiment within equity markets, with the NASDAQ and S&P 500 continuing to exhibit a bearish divergence.
In the foreign exchange arena, the GBP/USD pair is maintaining slight gains, trading above 1.2600 during the European session on Monday. Conversely, the US Dollar is retreating as investors show increased risk appetite, potentially fueled by signs of a truce in the ongoing Ukraine conflict. The Japanese Yen (JPY) is also displaying robust growth, indicating potential momentum in the coming weeks.
The impending tariffs set to take effect on Tuesday are another source of market tension, targeting Mexico, Canada, and China. These trade barriers could have far-reaching implications for international trade relations and economic stability.
In the cryptocurrency world, news from the White House on Sunday has generated substantial upward momentum for several tokens. As part of a strategic move, the US government plans to initiate a crypto fund featuring prominent tokens such as XRP, SOL, ADA, BTC, and ETH. This announcement has sparked considerable interest and activity within the crypto market.
Gold prices remain steady as investors look for direction following an initial surge during the Asian session on Monday. The precious metal's stability reflects an environment of cautious optimism as traders digest economic indicators and geopolitical news.