The US dollar has mostly risen, showing increases against the Australian dollar (+0.13%) and New Zealand dollar (+0.09%), with the most significant gain against the Japanese yen (+0.60%). The dollar is slightly lower against the Canadian dollar (-0.12%).
Tariffs on steel and aluminium, set at 25%, are now in effect, prompting Canada to announce $29.8 billion in retaliatory tariffs. The Bank of Canada is scheduled to announce its rate decision later today.
Central Bank Perspectives
Central bank commentary indicates the Bank of Japan is concerned about global economic uncertainties. Meanwhile, the European Central Bank is focused on ensuring inflation aligns with the 2% target despite potential economic shocks.
Today’s US CPI data is anticipated to show a month-on-month increase of 0.3%, with year-on-year expectations at 2.9% for the headline and 3.2% for core inflation. US Treasury yields are rising, with upcoming auctions for 10-year notes.
US stocks have shown a positive trend following a volatile session, while European indices are also mostly rising, particularly the German DAX (+1.75%). In commodities, crude oil prices are up by 1.3%, and the EIA’s weekly inventory data is due today.
Gold has decreased to $2,912.72, while silver has increased to $33.02. Bitcoin remains stable at $82,906.
Market Trends And Commodities
The dollar’s broad advance is clear, particularly against the yen, with a moderate lift against both the Australian and New Zealand dollars. The dip against the Canadian dollar may be linked to market anticipation of the Bank of Canada’s upcoming rate decision. With the Bank of Japan expressing concern over global economic strains and the European Central Bank focusing on keeping inflation in check, there is a sense that policymakers are closely watching for any vulnerabilities. The new tariffs on steel and aluminium have triggered Canada’s swift response, and given the scale of the retaliation—$29.8 billion—it is apparent that trade tensions could lead to market adjustments in the short term.
US inflation figures, set to be released today, are expected to confirm a monthly price increase of 0.3%. The annualised outlook suggests 2.9% for the main reading and 3.2% for core inflation. These numbers arrive as Treasury yields are climbing, which suggests markets are pricing in tighter monetary conditions. The upcoming 10-year note auction could play a role in bond pricing dynamics, particularly as investors weigh inflationary pressure against central bank policy paths.
Stock markets are showing resilience. US equities, despite recent choppiness, have managed to hold onto gains. European markets, especially in Germany, are seeing steady buying interest, with the DAX climbing 1.75%. Commodity markets reflect broader economic sentiment, with crude oil increasing by 1.3%. Investors will be closely watching the EIA report later today to assess supply and demand trends.
Precious metals are showing mixed movements. Gold is lower at $2,912.72, while silver has edged higher, now sitting at $33.02. Meanwhile, Bitcoin remains largely unchanged at $82,906, reflecting a steadier phase after recent turbulence.
