Industrial Production in Germany grew at a stronger pace than anticipated in January, signaling resilience in the face of global economic uncertainties. Despite the unexpected growth, the data failed to ignite a significant market reaction. Investors remain concerned over potential economic disruptions stemming from US President Donald Trump's trade tariffs, which continue to cast a shadow over global markets.
The ongoing global trade war has propelled investors toward safe-haven assets, with gold prices maintaining a steady position above the $2,900 mark during the early European session on Monday. Meanwhile, the EUR/USD pair held its ground above 1.0800, consolidating gains from the previous week. Similarly, GBP/USD traded above 1.2900 in European trading, reflecting a cautious market sentiment.
Market players are closely monitoring updates on Trump's tariff policies, with the data-sparse calendar heightening focus on potential announcements. The uncertainty surrounding US tariffs has contributed to risk-off flows, impacting currency pairs and casting doubt over future market dynamics.
Consumer price inflation displayed robust performance in 2025, although price growth experienced some cooling in February. Headline Consumer Price Index (CPI) rose by 0.25%, while the core index advanced by 0.27% during the month. The core index's moderate increase is attributed to a correction in categories that saw significant surges in January.
The US Dollar's recent downtrend showed signs of stabilization as the market digests potential risks associated with Trump's trade policies. Investors remain vigilant as geopolitical tensions and tariff uncertainties dominate the financial landscape.