Sterling and Euro Rebound, Gold Jumps Amid Intensifying Trade Tensions
| Action Insight Mid-Day Report 3-27-25 |
Sterling and Euro Rebound, Gold Jumps Amid Intensifying Trade Tensions |
Global headlines remain focused on US President Donald Trump’s unfolding tariff regime. But traders are telling a slightly different story. FTSE and DAX slip into negative territory, but the pullback in equities remains limited. Sterling and Euro are both strengthening against Dollar indeed. Tones out of London and Brussels are in stark contrast. UK Chancellor Rachel Reeves signaled a desire to avoid escalation, saying the UK has no intention to join the trade war at this stage. European Commission President Ursula von der Leyen struck a firmer stance, warning the US tariffs would harm businesses and consumers. EU also vowed retaliation with a “robust toolbox.” So far, it appears that the bounce in EUR/USD and GBP/USD are mainly due to Dollar's own weakness. If anything, Dollar’s decline suggests traders might already be pre-positioning for next week’s announcement of reciprocal tariffs. But it’s hard to draw firm conclusions yet, especially with quarter-end portfolio adjustments likely distorting some of the price action across assets.... |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.2858; (P) 1.2905; (R1) 1.2935; More... GBP/USD rebounded notably today but stays in range below 1.3013 short term top. Intraday bias remains neutral first. Corrective fall from 1.3013 could still extend lower to channel support (now at 1.2806). But downside should be contained by 38.2% retracement of 1.2248 to 1.3013 at 1.2721 to bring rebound. On the upside, break of 1.3013 will resume the rally from 1.2099. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 09:00 | EUR | Eurozone M3 Money Supply Y/Y Feb | 4.00% | 3.80% | 3.60% | 3.80% | | 12:30 | USD | Initial Jobless Claims (Mar 21) | 224K | 225K | 223K | 225K | | 12:30 | USD | GDP Annualized Q4 F | 2.40% | 2.30% | 2.30% | | 12:30 | USD | GDP Price Index Q4 F | 2.30% | 2.40% | 2.40% | | 12:30 | USD | Goods Trade Balance (USD) Feb P | -147.9B | -134.6B | -155.6B | | 12:30 | USD | Wholesale Inventories Feb P | 0.30% | 0.70% | 0.80% | | 14:00 | USD | Pending Home Sales M/M Feb | 0.90% | -4.60% | | 14:30 | USD | Natural Gas Storage | 37B | 9B |
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