All eyes on U.S. Data

Tensions around global trade are back in the spotlight after former U.S. President Donald Trump confirmed that a steep 25% import duty on non-U.S. manufactured automobiles will be implemented starting April 3. In a pointed warning, Trump hinted at additional levies should the European Union engage in any coordinated economic efforts with Canada perceived as harmful to American interests.

Calendar

Thursday's economic calendar is dense, with markets preparing for a slew of U.S. releases, including the final Q4 GDP figures, PCE price index (quarterly), weekly jobless claims, and energy inventory data. Of particular interest is the GDP revision, arriving just days after the OECD downgraded its U.S. growth projections, adding another layer of uncertainty.

The PCE release will serve as a curtain-raiser for the more closely watched February inflation print due Friday, which could help shape expectations around the Fed's next move.

European Markets

European Central Bank policymakers are scheduled to deliver a series of speeches today, with investors keen to gauge the internal split within the ECB governing council.

EUR/USD remains afloat just below the 1.0800 threshold in European hours, extending its rebound from recent lows. The pair benefits from softening U.S. dollar demand as markets digest the renewed protectionist rhetoric and shift their focus to Friday’s inflation numbers.

Commodities

Gold is on firmer ground, regaining upside momentum as geopolitical strains and trade anxieties fuel demand for safer assets. A slight pullback in the U.S. dollar, combined with growing expectations of a Fed rate cut later this year, also lends support to bullion. Traders will be looking for clearer direction from Thursday’s U.S. data ahead of Friday’s key inflation release.