In a week marked by significant geopolitical and economic developments, former President Donald Trump has announced the imposition of 25% tariffs on Canada and Mexico, set to take effect next Tuesday. Meanwhile, the USD/JPY currency pair is experiencing challenges, unable to sustain momentum after a modest rise toward the 151.00 mark during the Asian session. Contributing to the yen's strength is the growing belief that Japan's central bank, the Bank of Japan (BoJ), will soon raise interest rates. Simultaneously, geopolitical tensions are supporting the yen, as traders navigate an uncertain landscape.
Gold has been drawing attention in the early Asian session on Monday, with prices climbing to around $2,870. This increase comes as traders watch geopolitical risks and the ongoing conflict between Russia and Ukraine, which continue to bolster the precious metal. Additionally, gold is recovering from its lowest point since October 2024, attracting renewed buyer interest.
Amid these developments, market participants await the release of the US February ISM Manufacturing Purchasing Managers Index later on Monday. This index is expected to provide further insights into the economic landscape and potential market movements.
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Uncertainty looms over the timing of new European Union measures, adding another layer of complexity to an already intricate global economic environment. As traders navigate these developments, attention remains focused on key indicators and geopolitical trends.