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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "[Aihua Foreign Exchange Platform]: Decisive Battle CPI! Recession Storm swept the market". Hope it will be helpful to you! The original content is as follows:
Intraday of the European market on Wednesday, March 12, financial markets calmed down earlier on Wednesday after a turbulent U.S. session dominated by tariff headlines on Tuesday. The U.S. Economic Calendar will release Consumer Price Index (CPI) data for February. Later that day, the Bank of Canada (BoC) will announce monetary policy decisions.
U.S. President Donald Trump announced on Tuesday that in addition to the previously announced 25% tariff, he will impose an additional 25% tariff on steel and aluminum imported from Canada. In response, Ontario Premier Doug Ford announced that they would impose a 25% surcharge on the electricity they supply to more than one million households in the United States. Trump backed off after the development, and the White House said that only the previous plan to impose a 25% tariff on steel and aluminum products from Canada and all other countries would take effect, without exceptions or exemptions.
Earlier Wednesday, European aihuaforex.commission President Ursulavonder Leyen said the EU had taken "speed and proportionate countermeasures" to counter US imports in response to steel tariffs. Similarly, UK Trade Secretary Jonathan Reynolds said the U.S. decision to continue to impose global tariffs on steel and aluminum was disappointing, adding that they would retain all options and would respond to the national interest without hesitation. Meanwhile, Australian Prime Minister Anthony Albanese pointed out that they would not impose reciprocal tariffs on the United States and explained that retaliation measures would only increase costs for Australian consumers and fuel inflation.
Forex Market BaseThis market:
Early Wednesday, the US dollar index rebounded and traded in the positive area above 103.50. U.S. stock index futures also rose slightly in early European trading after major Wall Street stock indexes recorded a decline on Tuesday.
After a sharp fluctuation in the second half of the day, the USD/CAD closed almost without any change on Tuesday. The pair rose slightly higher on Wednesday, trading above 1.4450. The market generally expects the Bank of Canada to lower its policy interest rate by 25 basis points to 2.75% after its March meeting.
Euro/USD is ready to go and climbed to its five-month highest level around 1.0950 on Tuesday. The pair corrected lower on Wednesday, aihuaforex.com and traded below 1.0900 in early European trading.
GBP/USD rose more than 0.5% on Tuesday and rose above 1.2950. The pair fell back to 1.2900 due to pressure from the dollar's recovery in early Wednesday.
The US dollar/yen held its ground and rose to 148.50 after a slight increase on Tuesday. Bank of Japan Governor Kazuo Ueda said on Wednesday that it is natural for long-term interest rates to change based on market perceptions of the outlook for short-term policy interest rates.
Bulle market fundamentals:
Gold rebounded on Tuesday, rising nearly 1% on the day. Gold struggled to maintain bullish momentum, but successfully maintained above $2,900 on Wednesday.
Analysis of major currency trends:
Euro: Euro/USD continues to rise and reaches a 161.8% forecast from 1.0358 to 1.0932 to 1.0176 to 1.0531. There is no obvious sign of peaking yet, and it is in the middle of the trading day. Trading that continues above 1.0932 will target the forecast of 261.8% of 1.1287, slightly above the key resistance level of 1.1274. On the downside, support below 1.0804 will once again turn intraday bias into neutrality and lead to consolidation.
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