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Markets shift amid Ukraine-US deal and tariff uncertainty
President Trump confirmed that tariffs on Canadian and Mexican imports will take effect as planned before the March 4 deadline
Kyiv and Washington finalize strategic minerals agreement
The U.S. dollar showed mixed movements
WTI crude trading around $69.00 per barrel
Ukraine and the United States have reached an agreement on mineral resource development, marking a significant step in their economic and security ties. According to sources cited by the Financial Times, Kyiv sees this deal as an opportunity to secure long-term U.S. engagement, particularly under the Trump administration.
President Trump reaffirmed that planned tariffs on Canadian and Mexican imports will be implemented as scheduled, ahead of the March 4 deadline. While some market participants anticipated last-minute negotiations to avert the tariffs, uncertainty remains over whether this stance is a negotiation tactic or a firm policy direction.
European leaders, including French President Emmanuel Macron, have engaged in discussions with Trump, raising hopes that Europe may avoid similar trade restrictions.
Currencies
The U.S. dollar exhibited mixed movement in response to the announcement. The EUR/USD pair, which saw gains in the previous session, pulled back slightly, hovering around 1.0500 during Asian trading hours. The dollar strengthened as U.S. Treasury yields improved, signaling renewed confidence in U.S. assets.
Meanwhile, USD/JPY extended its rebound, reaching 149.50, buoyed by rising Treasury yields and market optimism surrounding the Republican budget plan that advances Trump’s tax policies.
Commodities
Oil prices came under pressure, with West Texas Intermediate (WTI) trading around $69.00 per barrel. Concerns over potential U.S. tariffs and weaker energy demand weighed on market sentiment, pushing crude to a two-month low.
Gold is recovering after touching a one-week low in the prior session, supported by investor caution over U.S. trade policies under President Donald Trump. Concerns surrounding potential tariff hikes have renewed demand for the metal, which is often sought as a safe-haven asset during economic turbulence.
Despite this recovery, analysts suggest that the prospect of higher tariffs has heightened inflation risks, which could influence the Federal Reserve’s monetary policy stance. If inflation remains a concern, the central bank may maintain elevated interest rates for an extended period. This scenario could limit gold’s gains, as rising yields typically reduce the appeal of non-yielding assets like gold.
