Disinflation trends are becoming increasingly notable across the Eurozone, with significant implications for economic actors. Specifically, inflation in February appears to have eased, with marked reductions observed in France. The regulated electricity price saw a substantial cut during this period, contributing to the overall trend. However, prices in the services sector continue to rise rapidly, adding a layer of complexity to the economic landscape.
Uncertainty surrounding the tariff plans of former U.S. President Donald Trump creates a supporting environment for the XAU/USD pair. This uncertainty, coupled with ongoing trade war fears, has been beneficial for gold prices. Nevertheless, gold has been experiencing a downward drift, reflecting the volatile nature of current market conditions.
Meanwhile, an uptick in U.S. bond yields has enabled the U.S. dollar to recover from its recent multi-month low. As bond yields increase, the dollar strengthens, impacting various currency pairs and commodities in the international markets.
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