The United States is poised to impose additional import duties on China, intensifying trade tensions and potentially affecting global markets. The new tariffs are expected to make Chinese products less competitive internationally. Meanwhile, the US Bureau of Economic Analysis is scheduled to release the Personal Consumption Expenditures (PCE) Price Index data for January this Friday at 13:30 GMT, an event closely watched by investors and economists alike.
President Donald Trump has announced an additional 10% levy on Chinese imports, adding to the existing tariffs. This move comes as part of a broader strategy to address what he describes as unfair trade practices. The President also confirmed that tariffs of 25% on Canadian and Mexican goods are set to take effect on March 4, reinforcing his administration's tough stance on trade.
In other developments, President Trump expressed concerns over fentanyl entering the US economy through Canada and Mexico, primarily sourced from China. This issue has added another layer of complexity to the already strained US-China relations.
Investors are also keenly awaiting President Trump's anticipated meeting with Ukrainian leader Volodymyr Zelenskyy on Friday. The discussions are expected to center around a minerals deal, which could have implications for the global market.
OPEC's recent decision to lower production quotas is likely to tighten oil supply, potentially leading to an increase in oil prices. This development has attracted significant attention from market analysts, who are considering its impact on global oil dynamics. OPEC+, an expanded group that includes ten non-OPEC members such as Russia, plays a critical role in these decisions.
The trading of EUR/USD near 1.0400 in European markets on Friday reflects the ongoing fluctuations in currency exchanges. These movements are influenced by various economic factors, including trade tensions and upcoming economic data releases.
Market participants are also closely monitoring the weekly oil inventory reports from the American Petroleum Institute (API) and the Energy Information Agency (EIA). These reports significantly impact the price of West Texas Intermediate (WTI) Oil. While both agencies provide valuable insights, the EIA data is often regarded as more reliable due to its status as a government agency.
The value of the US Dollar remains a key factor in determining WTI Crude Oil prices, as oil is predominantly traded in US Dollars. Any fluctuations in the dollar's value can have direct implications for oil pricing.
Positive developments towards peace between Russia and Ukraine could present an unfavorable scenario for oil prices. Such progress might lead to the lifting of sanctions on Russia by the Eurozone and the US, which could increase oil supplies and subsequently pressure prices downward.