U.S. UoM Consumer Sentiment & Inflation Expectations, BMW Earnings

The EUR/USD slipped approximately 0.3% on Thursday as European markets braced for an extended standoff with the United States over trade tariffs. The Trump administration’s 25% import tax on steel and aluminum has triggered retaliatory measures from several key trading partners, including the European Union (EU). In response, the EU has announced tariffs targeting iconic American products such as Harley-Davidson motorcycles and U.S. distilled whiskey, prompting a sharp reaction from President Donald Trump.

In a move that rattled markets, President Trump took to social media on Thursday, threatening to slap a 200% tariff on all European wines and champagne.

Gold prices soared on Thursday as growing uncertainty over U.S. trade policies and rising expectations of a Federal Reserve (Fed) rate cut fueled demand for the precious metal.

The gold rally appears poised to continue as President Donald Trump escalates trade tensions with both U.S. allies and adversaries in an effort to narrow the country’s trade deficit. The administration’s shifting stance on tariffs—imposing and then reconsidering duties on imports—has reinforced gold’s status as a safe-haven asset, attracting investors seeking stability amid policy uncertainty.

With gold nearing the $3,000 threshold, traders will be closely monitoring the Fed’s stance on inflation and interest rates, as any dovish signals could further fuel the metal’s upward momentum.

Oil prices fell more than 1% on Thursday as investors weighed macroeconomic concerns, including escalating trade tensions and uncertainty surrounding a U.S. proposal for a Russia-Ukraine ceasefire.

According to the latest report from the International Energy Agency (IEA), global oil supply is projected to exceed demand by approximately 600,000 barrels per day (bpd) in 2025. The agency also revised its global demand growth forecast downward to 1.03 million bpd, 70,000 bpd lower than last month’s estimate, citing deteriorating macroeconomic conditions and heightened trade disputes.

Geopolitical factors also played a role in oil’s decline. On Thursday, Russian President Vladimir Putin signaled Moscow’s willingness to consider a U.S.-proposed ceasefire in Ukraine, but emphasized that any agreement must ensure lasting peace and address the root causes of the conflict.

The US 500 tumbled on Thursday, slipping into correction territory as escalating trade tensions overshadowed fresh signs of easing inflation.

U.S. producer prices cooled more than expected in February, with the Producer Price Index (PPI) remaining flat month-over-month and rising at a slower-than-anticipated annual rate. The data, coupled with Wednesday’s softer Consumer Price Index (CPI) report, suggests inflationary pressures may be moderating.

Markets took another hit as President Donald Trump reaffirmed his plans to impose global reciprocal tariffs starting April 2. The announcement follows his earlier threat of 200% tariffs on European alcohol imports, a move retaliating against the EU’s countermeasures on U.S. steel and aluminum tariffs.