Escalating Trade War and Key Economic Indicators

Several significant events are expected on March 11, 2025, which could significantly impact currency rates on the Forex market. Here are the key events:

1. Escalation of the US-China Trade War

The trade conflict between the two largest economies continues to escalate. The US has increased tariffs on Chinese goods to 20%, and China has responded by imposing retaliatory tariffs on American products. Heightened tensions increase market uncertainty, potentially causing sharp fluctuations in the US dollar (USD) and Chinese yuan (CNY) exchange rates.

2. UK's Economic Data

The UK will release reports on industrial production and GDP growth. Positive data could strengthen the British pound sterling (GBP), while weak figures may weaken its position in the market.

3. ZEW Economic Sentiment Index (Eurozone)

Market attention will focus on the release of the ZEW economic sentiment index, a critical indicator of the Eurozone’s economic health. High index values usually support the euro (EUR), while a decrease in the indicator may pressure the currency.

4. US Consumer Price Index (CPI)

The US inflation report will be released. A high inflation rate could heighten expectations of an interest rate hike by the Federal Reserve, potentially strengthening the US dollar (USD). Conversely, weaker-than-expected data could make the dollar less attractive to investors.

5. Rising Demand for Safe-Haven Currencies

Amid geopolitical tensions and instability in stock markets, investors may actively buy safe-haven currencies such as the Japanese yen (JPY) and Swiss franc (CHF), strengthening their positions relative to other currencies.

Traders are advised to closely monitor these events and incorporate them into their trading strategies for tomorrow.