U.S. GDP, U.S. Jobless Claims, U.S. Pending Home Sales

The EUR/USD pair continued its downward trajectory on Wednesday, declining by over 0.40% and slipping below the 1.0750 mark for the first time since early March. This marks the sixth consecutive session of losses, with risk sentiment deteriorating further as trade war concerns weigh on global markets ahead of April 2.

Reports suggest the Trump administration remains committed to implementing broad tariffs on copper imports into the U.S., following the recent imposition of a 25% import tax on steel and aluminum. Additionally, President Trump is expected to announce new tariffs on automobiles, with speculation that the levy could be around 20%. European Union (EU) officials remain uncertain about the scope and timing of these measures, which appear subject to shifting White House policy decisions.

In addition to the anticipated tariff announcements on April 2, the administration is preparing a "reciprocal" trade package aimed at countering foreign trade barriers against U.S. goods.

Investors will closely monitor the U.S. GDP growth figures set for release later today, though the report is unlikely to trigger significant market movement.

Gold prices remained flat on Wednesday, as a rebound in the US Dollar Index capped any upside momentum.

Although gold has faced mild downward pressure, the precious metal remains firmly above the critical $3,000 support level, keeping bullish investors optimistic about further gains.

In economic data, February’s US Durable Goods Orders came in stronger than expected, according to the Department of Commerce, reinforcing signs of economic resilience. Meanwhile, Federal Reserve officials continued to make headlines with their latest remarks on monetary policy.

Looking ahead, market participants are focused on Friday’s release of the Fed’s preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index.

Oil prices rose on Wednesday, supported by government data showing a decline in U.S. crude and fuel inventories, as well as growing concerns over tightening global supply following the U.S. threat of tariffs on countries purchasing Venezuelan crude.

According to the Energy Information Administration (EIA), U.S. crude inventories fell by 3.3 million barrels to 433.6 million barrels for the week ending March 21—significantly exceeding analyst expectations of a 956,000-barrel draw.

Meanwhile, geopolitical tensions escalated as U.S. President Donald Trump announced potential tariffs on countries purchasing Venezuelan oil, following earlier sanctions targeting China’s imports from Iran.

Limiting oil price gains, the U.S. brokered agreements with Ukraine and Russia to pause attacks on energy infrastructure and maritime targets. In exchange, Washington has agreed to push for the easing of certain sanctions on Moscow, which could lead to an increase in Russian oil supply.

All three U.S. stock index futures declined on Wednesday following President Donald Trump’s announcement of new tariffs on automobile imports. Technology stocks also faced pressure amid growing concerns over artificial intelligence (AI) demand.

Concerns over the AI sector deepened as shares of Nvidia and other major tech firms fell sharply. A report from TD Cowen indicated that Microsoft had canceled multiple AI data center contracts, adding to fears of oversupply in the industry.

Trump confirmed that his administration will impose a 25% tariff on all foreign-made cars and light trucks, effective April 2.

The move is expected to increase domestic automobile costs in the short term as manufacturers adjust supply chains and shift more production to the U.S. However, the tariff is also likely to hurt American automakers, many of which operate factories abroad, particularly in Mexico.