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Trump’s tariffs are set to be implemented tomorrow. The President is widely expected to announce widespread tariffs across a variety of nations and industries. According to Bloomberg, White House Press Secretary Karoline Leavitt said Monday the announcement would feature “country-based” tariffs. She said the president is also “committed to implementing” sectoral duties. Overall, it appears that the US Government is committed to proceeding with the imposition of tariffs, which in turn could result to widespread trade wars between the US and a variety of nations. In turn the aforementioned scenario could lead to numerous economic implications for numerous countries around the world. Thus, should the US proceed with its tariff ambitions it could funnel safe haven inflows into the precious metal given its status as a safe haven asset and as a hedge against inflation.Earlier on today, the RBA remained on hold as expected. The bank’s accompanying statement noted, “Many central banks have eased monetary policy since the start of the year, but they have become increasingly attentive to the evolving risks from recent global policy developments.” Implying that the RBA as well is concerned over the global economy. In turn this may be perceived as slightly hawkish in nature, with the bank potentially aiming to acquire further information before resuming on it’s rate cutting path.Over in Europe the Eurozone’s preliminary HICP rate for March is set to be released during today’s European session. The HICP rate is expected to remain steady at 2.3% yet a deviation lower or higher could weaken or aid the EUR respectively.
EUR/USD appears to be stabilizing between our 1.0730 (S1) support level and the 1.0845 (R1) resistance line. We opt for a sideways bias for the pair and supporting our case is the pair’s failure to clear the 1.0845 (R1) resistance line. We would also like to mention the RSI indicator below our chart which currently registers a figure in the upper fifty range which tends to imply a neutral market sentiment, yet being close to 60 could also imply that some bullish market tendencies remain. Nonetheless, for our sideways bias to be maintained we would require the pair to remain confined between the 1.0730 (S1) support level and the 1.0845 (R1) resistance line. On the flip side for a bullish outlook we would require a clear break above the 1.0845 (R1) resistance line, with the next possible target for the bulls being the 1.0940 (R2) resistance level. Lastly, for a bearish outlook we would require a clear break below the 1.0730 (S1) support level with the next possible target for the bears being the 1.0630 (S2) support line.
GBP/USD appears to be moving in a sideways fashion after failing to clear our 1.2830 (R1) resistance level. We opt for a sideways bias for the pair, yet we must note that the RSI indicator below our chart currently registers a figure relatively near 60 implying some residual bullish market tendencies. For our sideways bias to be maintained we would require the pair to remain confined between the 1.2830 (S1) support line and the 1.3000 (R1) resistance level. On the flip side for a bullish outlook we would require a clear break above the 1.3000 (R1) resistance level with the next possible target for the bulls being the 1.3155 (R2) resistance line. Lastly, for a bearish outlook we would require a clear break below the 1.2830 (S1) support line with the next possible target for the bears being the 1.2670 (S2) support level.
Other highlights for the day:
Today we get UK’s nationwide house prices rate, France’s and Germany’s manufacturing PMI figure all for March, the UK’s manufacturing PMI figure and the Eurozone’s preliminary HICP rate both for March as well. During the American session, we note Canada’s manufacturing PMI figure, the US final S&P and ISM Manufacturing PMI figures for March and ending the day is the JOLTS Job Openings figure for February. In tomorrow’s Asian session we note Australia’s AIG Manufacturing index figure for March. On a monetary level we note the speeches by BoE Greene and Richmond Fed President Barkin.
EUR/USD Daily Chart
- Support: 1.0730 (S1), 1.0630 (S2), 1.0530 (S3)
- Resistance: 1.0845 (R1), 1.0945 (R2), 1.1045 (R3)
GBP/USD Daily Chart
- Support:1.2830 (S1), 1.2670 (S2), 1.2505 (S3)
- Resistance: 1.3000 (R1), 1.3155 (R2), 1.3310 (R3)
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Disclaimer:
This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.
JA 
