Intensified fears of a global trade war stoking demand for Gold as a haven have been supportive. As a result, its stock price has soared in the last few trading days. Today, stagflation is a very real threat in the United States. This, together with the debased US Dollar, is causing an enormous monetary tectonic plate shift. The USD/JPY resumes moving lower as it tests the 149.00 key psychological level during Monday’s Asian trading. In addition, market participants are closely focused on economic indicators that might deepen these negative currency dynamics.
Against this backdrop of tension, we have the current geopolitical climate. Mutual tariffs floated by former President Donald Trump would bring even more havoc on all fronts. These tariffs have pushed modality to record highs, being only surpassed by levels during the Second World War. This increase has been largely overlooked despite their disastrous economic consequences. Tariff worries are keeping a ceiling on Gold’s ability to go much higher. These problems still permeate and cloud good news, optimism in the market.
Even in light of increasing volatility on the currency markets, the greenback is still facing devaluation pressures. The worst is USD a down slide in currency pairs influencing an aggressive from currency pairs, fostering the downslide widening, USD/JPY Significant Declines. Traders are paying close attention to forthcoming economic reports, particularly the US jobs report, which might reveal significant impacts on the labor market.
Inflation will be the other big story that could sway ECB policy-makers’ decisions. Inflation data will play an important role in ECB bets. More importantly, it will prove important to determine future monetary policies, starting with an April cut still in doubt.
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