U.S. Core Durable Goods Orders, EIA Crude Oil Inventories, FOMC Members Speak

The EUR/USD pair has slowed its recent descent but remains under pressure, marking its fifth consecutive day of losses.

On Tuesday, the U.S. Conference Board (CB) reported a rise in one-year consumer inflation expectations, which climbed to 6.2% in March from 5.8% in February. Persistent concerns over high prices, particularly for essential household goods such as eggs, continue to weigh on sentiment. Additionally, inflationary risks stemming from tariffs imposed during the Trump administration remain a key issue.

Further fueling economic concerns, Moody’s issued a stark warning on Tuesday, citing a "deterioration" in the U.S.'s fiscal strength. The ratings agency highlighted mounting challenges in managing U.S. debt and projected a prolonged decline in fiscal stability.

Looking ahead, market participants will be closely watching the release of U.S. Durable Goods Orders later today. The data could provide further insight into the health of the U.S. economy and influence near-term market movements.

Gold prices advanced on Tuesday, supported by a weaker U.S. Dollar and declining U.S. real yields, which traditionally share an inverse relationship with bullion. An unexpected rise in inflation expectations—driven by U.S. trade policies—fueled demand for the precious metal.

Fresh economic data revealed that U.S. consumer confidence has dropped to its lowest level in over four years. Against this backdrop, gold edged higher as investors sought safety in response to growing economic uncertainty.

In the policy sphere, several Federal Reserve officials offered their perspectives on inflation and economic conditions. Fed Governor Adriana Kugler noted a resurgence in goods inflation, highlighting that certain subcategories are showing renewed price pressures. Additionally, New York Fed President John Williams pointed to rising uncertainty among businesses and households, underscoring mounting concerns about the broader economic outlook.

Oil prices traded between gains and losses on Tuesday and managed to end the session with minor gains as a temporary maritime and energy truce between Russia and Ukraine helped ease supply concerns, countering the impact of potential U.S. tariffs on countries purchasing Venezuelan crude.

The United States brokered agreements with both Ukraine and Russia to halt attacks on maritime and energy targets, with Washington pledging to push for the easing of certain sanctions on Moscow.

Meanwhile, supply concerns resurfaced after former President Donald Trump threatened tariffs on countries importing oil and gas from Venezuela.

Adding to geopolitical tensions, the U.S. introduced fresh sanctions last week aimed at curbing Iranian oil exports.

Looking ahead, OPEC+, the coalition of the Organization of the Petroleum Exporting Countries and its allies, including Russia, is expected to proceed with plans to increase oil output for a second consecutive month in May.

The US 500 ended higher on Tuesday after a volatile session, as investors balanced a sharp drop in consumer confidence against a tech-led rally fueled by Tesla.

The Conference Board’s consumer confidence index fell sharply to 92.9 in March, down from a revised 100.1 in the previous month, as concerns over a tariff-induced slowdown weighed on sentiment.

Investor sentiment remains cautious as markets await clarity on President Donald Trump’s evolving tariff agenda.

Tesla surged more than 3%, even after data showed that its European sales plummeted by over 40% in February. The electric vehicle maker continues to face mounting competition and backlash over CEO Elon Musk’s political activities. Despite Tuesday’s rally, Tesla shares remain down more than 30% year-to-date.