In the week ahead: Fed Chair Powell Testifies, U.S. Core CPI & PPI, Retail Sales

The EUR/USD pair closed lower on Friday, slipping 0.55% as market sentiment remained pressured by expectations of a widening interest rate gap between the United States and the Eurozone.

Fresh data from the U.S. Bureau of Labor Statistics (BLS) revealed that Nonfarm Payrolls (NFP) increased by 143,000 in January—well below December’s revised 307,000 and missing the market forecast of 170,000. However, the Unemployment Rate edged down to 4% from December’s 4.1%, suggesting resilience in the labor market despite slowing job growth.

Following the latest jobs report, the Federal Reserve is now anticipated to keep interest rates steady throughout the year. In contrast, the European Central Bank (ECB) has already moved toward monetary easing, cutting rates and signaling the potential for further reductions in March.

The diverging monetary policy outlook continues to exert downward pressure on the euro, keeping investors cautious about the pair’s trajectory in the near term.

Gold extended its uptrend on Friday as escalating trade tensions between the U.S. and China, coupled with a mixed U.S. employment report, bolstered demand for the precious metal.

Comments from U.S. President Donald Trump, indicating plans to impose reciprocal tariffs on multiple countries this week, provided further support for bullion. Rising geopolitical uncertainty heading into the weekend could enhance gold’s appeal as a safe-haven asset.

With lingering trade tensions and central bank policy in focus, gold remains well-positioned as a key asset for risk-averse investors.

Oil prices closed higher on Friday after the U.S. imposed fresh sanctions on Iran’s crude exports. However, prices posted a weekly decline as concerns over President Donald Trump’s renewed trade war with China and threats of additional tariffs weighed on market sentiment.

Market participants closely monitored statements from Trump throughout Friday, as any policy shifts could quickly impact crude markets.

With geopolitical uncertainty and demand concerns in focus, crude markets remain highly reactive to policy developments and economic signals in the weeks ahead.

The US 500 closed significantly lower on Friday as investors reacted to a weaker-than-expected jobs report and a sharp rise in inflation expectations. Adding to market jitters, President Donald Trump announced fresh tariff measures set to take effect next week.

President Trump signaled plans to impose higher tariffs this week on imported goods, aiming to align them with the rates imposed by U.S. trading partners. While details on which countries would be affected remain unclear, the announcement reignited fears of a global trade war, dampening investor sentiment.

Amazon stock slid 4% after the company projected first-quarter 2025 sales of $151 billion to $155.5 billion, falling short of analysts’ expectations of $158.33 billion.

Tesla shares fell 3.4% after data from the China Passenger Car Association showed the automaker’s sales of China-made electric vehicles dropped 11.5% year-over-year in January to 63,238 units.