Cautious Trading Prevails as Markets Await Retaliations to US Tariffs
| Action Insight Mid-Day Report 2-11-25 |
Cautious Trading Prevails as Markets Await Retaliations to US Tariffs |
Trading is relatively subdued today across global markets as investors assess the fallout from the US steel and aluminum tariffs announced by President Donald Trump. Major European equity indexes are treading water, while US futures are slightly in the red. Treasury yields are recovering, though it remains too early to confirm a reversal of the recent downtrend. Meanwhile, Gold is having a notable pullback after an initial rejection at the key 3000 psychological level, suggesting profit-taking among traders. European Commission President Ursula von der Leyen responded to the US move, stating that the EU will not let the "unjustified tariffs" go unanswered and pledged "firm and proportionate countermeasures" to protect European interests. However, no specific retaliatory measures have been outlined yet. Canada’s Prime Minister Justin Trudeau also criticized the tariffs as "unacceptable," reinforcing that "Canadians will stand up strongly and firmly if we need to." Markets remain cautious, awaiting concrete details on countermeasures from key US trade partners. At a global level, IMF Managing Director Kristalina Georgieva addressed the uncertainty surrounding the tariff situation at the World Government Summit in Dubai, stating that it remains an "evolving story" and that it is "too early to say" what the full economic impact might be. This reinforces the broader market sentiment that investors are hesitant to make directional bets until more clarity emerges on trade retaliation and its economic implications.... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0282; (P) 1.0310; (R1) 1.0334; More... EUR/USD recovers mildly today but stays in the middle of the near term established range above 1.0176. Intraday bias remains neutral for the moment. Outlook will remain bearish as long as 38.2% retracement of 1.1213 to 1.0176 at 1.0572 holds. On the downside, break of 1.0176 will resume whole fall from 1.1213. However, decisive break of 1.0572 will raise the chance of reversal, and target 61.8% retracement at 1.0817. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | AUD | Westpac Consumer Confidence Feb | 0.10% | -0.70% | | 00:30 | AUD | NAB Business Confidence Jan | 4 | -2 | | 00:30 | AUD | NAB Business Conditions Jan | 3 | 6 | | 11:00 | USD | NFIB Business Optimism Jan | 102.8 | 104.6 | 105.1 | | 13:30 | CAD | Building Permits M/M Dec | 11.00% | 2.30% | -5.90% |
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