Key Market Trends to Monitor This Week (3-7, February 2025)

Yen Recovers Amid Trade Concerns?

The Japanese Yen slightly recovers against the USD after hitting multi-day lows, supported by expectations of Bank of Japan rate hikes and rising core inflation. However, concerns over Trump’s trade tariffs continue to weigh on the JPY. The narrowing interest rate differential with the US further impacts the USD/JPY pair, as traders await key US economic data, including the ISM Manufacturing PMI.?

Australian Dollar Declines Amid Tariffs?

The Australian Dollar continues to weaken against the USD, extending its losing streak for six sessions due to US President Trump's tariffs on China, Canada, and Mexico. With sentiment turning risk-off, the AUD/USD pair dropped nearly 2%. China's Caixin Manufacturing PMI also fell short of expectations, adding to concerns over Australia's economic outlook. Traders are now closely watching the upcoming ISM Manufacturing PMI for further direction.?

Gold Prices Struggle Amid Strong USD?

Gold prices have retreated from record highs, trading around $2,785 as a stronger US Dollar weighs heavily on the commodity. President Trump's new trade tariffs on Canada, Mexico, and China contribute to a risk-off sentiment, supporting the USD. Despite this, expectations for further Federal Reserve policy easing provide some cushion for gold. Traders are eyeing upcoming US macro data, including the ISM Manufacturing PMI, to gauge future price movements.?

Beijing Seeks Trade Talks with Trump?

Beijing is preparing an opening bid to negotiate with Trump, aiming to prevent further tariff increases and technology restrictions.?

WTI Oil Supported by Supply Concerns?

West Texas Intermediate (WTI) crude oil prices hover around $73.00 per barrel, boosted by potential supply disruptions due to new tariffs on Canadian and Mexican energy imports. While OPEC+ plans gradual output increases, fears of reduced supply provide support amid limited demand expectations.? Register Now!