Market Sector Scanner: Tariff Tensions Rise Again as Gold Holds Firm and Stocks Face Pressure
U.S. stocks edged higher, but new 15% tariff plans have revived trade uncertainty. Gold remains firm near $5,000, and with U.S. PPI ahead, volatility may increase across all markets, presenting many trading opportunities.
U.S. stocks closed slightly higher after the Supreme Court ruled against the Trump administration’s global tariffs, but gains were limited as Trump announced new 15% tariffs over the weekend. Stronger Durable Goods data and divided Fed minutes supported the U.S. dollar. Japan’s GDP was weaker than expected and inflation slowed to 2%, while bond yields fell after Takaichi pledged responsible fiscal policy.
Scan for opportunities on:
Key Events Calendar for February 23 – February 27
Forex Market
USD/JPY
Last Week Recap
Support held near 152, and stronger-than-expected U.S. data, along with Fed minutes suggesting that rate cuts may be delayed, helped USD/JPY push higher last week.
Technical Picture
The market is no longer oversold, as prices have moved back above the 10-day moving average. However, further gains may be limited, with resistance around 156 and the 10-day moving average still pointing lower.
Outlook This Week
Rising tariff tensions could weaken the U.S. dollar this week. For now, focusing on selling opportunities may be the better approach in the days ahead.
GBP/JPY
Last Week Recap
GBP/JPY stopped falling but remained under pressure last week. UK unemployment and inflation data met expectations and failed to provide fresh support for the pound. At the same time, a stronger U.S. dollar weighed on broader GBP sentiment, keeping the pair subdued.
Technical Picture
The lower Bollinger Band provided support throughout the week and helped slow the decline. However, the 10-day moving average continues to point lower, limiting upside momentum and suggesting the broader tone remains weak.
Outlook This Week
The short-term trend remains bearish, so sideways to lower price action is the more likely scenario in the week ahead. Any brief rebounds may struggle to gain traction, with selling pressure likely to return near resistance levels.
EUR/USD
Last Week Recap
A stronger U.S. dollar kept EUR/USD under pressure throughout the week. EU Economic Sentiment came in weaker than expected, while U.S. data overall beat expectations, reinforcing dollar strength.
Technical Picture
The recent decline has pushed prices back toward the lower Bollinger Band, which has narrowed as volatility has decreased. The 10-day moving average is now pointing sideways, suggesting range-bound conditions in the short term.
Outlook This Week
Further short-term losses may be limited, as recent lows and the lower Bollinger Band provide support. With no strong trend in place, building a strategy for a quiet, sideways market may be the better approach this week.
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Equities
U.S. Stock Market
Last Week Recap
A strong weekly close followed the rejection of Trump’s tariffs, helping the Nasdaq finish the week in positive territory during what was otherwise a quiet period of trading.
Technical Picture
The lower Bollinger Band provided support and helped prices recover back above the 10-day moving average, effectively ending the short-term downtrend.
Outlook This Week
Last week’s rebound may prove short-lived if Trump moves to raise tariffs again, which could renew investor concerns. Large gains appear unlikely, so focusing on selling opportunities and a potential retest of recent lows may be the more probable scenario this week.
Commodities
Gold
Last Week Recap
Gold remained stuck around the $5,000 level last week but finished near the weekly high as tariff tensions returned and concerns increased over potential conflict between the U.S. and Iran.
Technical Picture
The 10-day moving average has turned higher, although prices remain below the highs seen earlier this month, which could be tested again in the short term. Bollinger Bands have narrowed recently, but volatility may begin to increase this week.
Outlook This Week
Gold demand remains strong, and the broader uptrend could resume. Focusing on buying opportunities and avoiding selling into sharp moves higher may prove the better strategy in the days ahead.
Oil traders will closely watch Iran this week to see if tensions increase. At the same time, Friday’s U.S. PPI data will be the key economic release, as it could affect inflation and interest rate expectations. With tariffs back in the news, overall market volatility may rise.
