Gold prices have climbed back to $2,900, reversing significant losses incurred at the end of February. Meanwhile, the EUR/USD currency pair has reached levels not seen since November, closing just below 1.0888 on Friday. The currency market continues to experience volatility amid various economic indicators and geopolitical factors influencing global markets.
In early 2025, consumer price inflation surged, but recent data suggests a cooling trend in February. Analysts estimate that the headline Consumer Price Index (CPI) rose by 0.25%, with the core index advancing by 0.27%. This moderation is attributed to declines in categories that saw notable increases in January.
The AUD/USD pair exhibited weakness, dropping to near 0.6305 during the early Asian session on Monday. This decline was driven by disappointing Chinese economic data over the weekend, which negatively impacted the China-proxy Australian Dollar. Concerns about a potential slowdown in the US economy may offer some support to mitigate losses for this currency pair.
The US Dollar experienced a sell-off due to lackluster economic data from the United States and growing fears that tariffs imposed by President Donald Trump could lead to an economic downturn. These concerns are contributing to the current turbulence in global currency markets.
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