

Market Update: 18th March 2025

Trump’s Tariff Threats Escalate Tensions with Europe President Donald Trump’s “Trump 2.0” agenda is ramping up tariff risks, particularly for Europe, as Standard Chartered notes. His push for aggressive trade policies is raising fears of a retaliatory trade war, unsettling markets and driving uncertainty. This development is tilting sentiment toward safe-haven assets as traders weigh the potential economic fallout. WTI Crude Hits $68.00 on Geopolitical Heat WTI crude oil prices are surging past $68.00 per barrel, reaching a two-week peak amid Middle East tensions and optimism over China’s demand outlook. Trump’s hawkish Yemen stance is amplifying supply concerns, while a weaker US Dollar adds fuel to this bullish run, keeping oil markets on edge. CAD Strengthens Before Canada’s CPI Data The Canadian Dollar (CAD) is gaining ground ahead of the February CPI release, expected to show a slight easing in inflation. Rising WTI prices are bolstering the commodity-tied currency, though Trump’s tariff warnings against Canada temper the upside. The CPI outcome could either solidify CAD’s gains or spark a pullback. Oil Prices Climb as Risks Mount Geopolitical pressures are intensifying in the oil market, with ING pointing to Trump’s Yemen policy as a key driver. WTI’s climb above $68.00 and Brent’s push toward $71.00 reflect heightened Middle East risks and a softer USD. China’s economic optimism further supports this uptrend, keeping crude in sharp focus. Broader Market Context Markets are navigating a volatile mix of Trump-driven tariff fears and geopolitical flare-ups. WTI’s surge underscores oil’s sensitivity to Middle East unrest and China’s recovery, while CAD holds firm with an eye on inflation data. Trump’s policies are casting a long shadow, pressuring risk assets and lifting commodity prices. As sentiment wavers, the next moves hinge on US economic signals and global trade developments.

Learn more

Publication date:

2025-03-18 09:48:02 (GMT)

The terms and conditions of use set out below (referred to as "FX Blue's Terms"), form a contractual agreement governing FX Blue's relationship with you in relation to your use of this Website (“Agreement”) and you agree to be legally bound by FX Blue's Terms just as if you had signed this Agreement. By using this Website and any Information, you are agreeing to comply with and be bound by FX Blue's Terms, including any revisions that may be made to FX Blue's Terms from time to time. FX Blue reserves the right, in FX Blue's sole discretion, to change, modify, add or remove portions of FX Blue's Terms at any time by posting the revisions on the Website. You should check FX Blue's Terms periodically for changes as by using the Website after FX Blue posts any changes to FX Blue's Terms, you are agreeing to accept those changes, whether or not you have reviewed them, and you waive any right you may have to receive individualised notice of such changes. FX Blue's Terms may be supplemented by additional terms and conditions pertaining to specific content and activities. You agree and understand that such additional terms and conditions are hereby incorporated by reference to FX Blue's Terms. Your continued use of the Website means that you accept any new or modified FX Blue Terms.