Market Focus: CPI and trade shifts

U.S. Market

Investors are closely watching today’s U.S. Consumer Price Index (CPI) release, as inflation data could shape expectations for the Federal Reserve’s next policy moves. Also on the radar is the latest OPEC report and weekly crude oil inventory data, with forecasts anticipating a 2 million barrel increase—a slowdown from the previous 3.6 million barrel rise.

Meanwhile, the Bank of Canada is expected to lower interest rates by 25 basis points, from 3% to 2.75%, as policymakers respond to evolving economic conditions.

Currencies

• USD/JPY: The Japanese Yen extends its losing streak for a second day against the U.S. Dollar, weighed down by market optimism and persistent concerns about U.S. trade policy under Trump’s administration. The widening monetary policy gap between the Federal Reserve and the Bank of Japan adds to the JPY’s weakness.
  
• EUR/USD: The Euro struggles to hold ground near 1.0900 in the European session, retreating after a three-day advance. The EU's response to U.S. tariffs on steel has introduced fresh headwinds for the common currency, while the market shifts toward USD buying ahead of the U.S. inflation report.
  

Trade Policy Updates

The White House confirmed that a 25% tariff on steel and aluminum imports will take effect for Canada and other trading partners at midnight on March 12, with no exemptions. However, Trump’s trade advisor, Peter Navarro, clarified that the planned 50% tariffs on Canadian steel and aluminum will be delayed until April 2, when the U.S. will begin enforcing reciprocal trade measures.

Commodities Market

• Gold: Gold prices struggle to extend the previous session’s gains but remain relatively stable. A modest rebound in the U.S. Dollar from multi-month lows, combined with improved risk sentiment, limits the upside for the precious metal. However, ongoing trade tensions and expectations of a Fed rate cut continue to offer a safety net against deeper losses.