Equities Extend Losses on Tariff Fears, But Forex Markets Hold Steady in Consolidation
| Action Insight Daily Report 3-14-25 |
Equities Extend Losses on Tariff Fears, But Forex Markets Hold Steady in Consolidation |
US stock markets suffered another brutal session overnight, with NASDAQ leading the decline, shedding nearly -2%. All three major indexes closed below their respective 55 W EMAs, reinforcing the bearish case that the markets are now in a medium-term correction phase. This technical breakdown suggests that downside momentum is gaining traction, with investors recalibrating their expectations amid escalating economic uncertainty, particularly regarding the relentless stream of tariff threats. A major driver of the selloff remains the intensifying trade war, which shows no signs of slowing down. Tariff threats are mounting almost daily, as analysts argue that markets have yet to fully price in the potential economic fallout. The momentum of these escalations is expected to persist well into the second quarter, particularly with reciprocal tariffs set to take effect in April. The European Union has already signaled its intent to retaliate against US tariffs, and similar counter measures would be seen from other countries too. Beyond the EU response, additional tariffs are in the pipeline, targeting China with higher duties, and likely extending to non-border-related tariffs against Canada and Mexico. Japan could also find itself in Washington’s crosshairs, particularly over criticism about its weak currency. The sheer breadth of these tariff initiatives suggests that the market’s current adjustment may just be the beginning of a broader risk-off shift. Investors have just started offloading positions to hedge against further risks.... |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.4384; (P) 1.4418; (R1) 1.4477; More... Intraday bias in USD/CAD stays neutral as sideway trading continues. Price actions from 1.4791 high are seen as a corrective pattern, with rebound from 1.4150 as the second leg. On the upside, break of 1.4541 will target 100% projection of 1.4150 to 1.4541 from 1.4238 at 1.4629 and above. But for now, strong resistance is expected from 1.4791 to limit upside to bring the third leg. On the downside, break of 1.4238 will confirm that the third leg has started through 1.4150 support. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:30 | NZD | Business NZ PMI Feb | 53.9 | 51.4 | 51.7 | | 07:00 | EUR | Germany CPI M/M Feb F | 0.40% | 0.40% | | 07:00 | EUR | Germany CPI Y/Y Feb F | 2.30% | 2.30% | | 07:00 | GBP | GDP M/M Jan | 0.10% | 0.40% | | 07:00 | GBP | Industrial Production M/M Jan | -0.10% | 0.50% | | 07:00 | GBP | Industrial Production Y/Y Jan | -0.70% | -1.90% | | 07:00 | GBP | Manufacturing Production M/M Jan | 0.00% | 0.70% | | 07:00 | GBP | Manufacturing Production Y/Y Jan | -0.40% | -1.40% | | 07:00 | GBP | Goods Trade Balance (GBP) Jan | -17.1B | -17.4B | | 12:30 | CAD | Manufacturing Sales M/M Jan | 2.00% | 0.30% | | 12:30 | CAD | Wholesale Sales M/M Jan | 1.80% | -0.20% | | 14:00 | USD | UoM Consumer Sentiment Mar P | 63.8 | 64.7 | | 14:00 | USD | UoM Inflation Expectations Mar P | 3.50% |
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