Wall Street Rebound on Trump Tariff Delay

*Wall Street revived from bearish momentum as President Trump announced a delay on Canada's auto import tariff delay.

*Euro strengthened as the German Bund yielded after a massive selloff.

*Gold prices break new highs in a market filled with uncertainty.

Market Summary

Wall Street snapped its week-long losing streak, staging a technical rebound in the last session, with the Dow Jones reclaiming the 43,000 mark. The recovery came after former U.S. President Donald Trump announced a delay in auto tariffs on Canada, though reciprocal tariffs are still set to take effect on April 2. The Canadian dollar found relief from yet another policy reversal by the Trump administration, with the USD/CAD pair posting its second consecutive daily decline as the greenback softened.

In the European market, the euro surged to its highest level since last November, with EUR/USD rallying sharply. The main catalyst behind the euros strength was a selloff in German Bunds, as markets reacted to expectations that the newly elected German Chancellor will push through a major government spending package focused on infrastructure and defense. The resulting spike in Bund yields fueled expectations of higher interest rates, driving the euro higher.

Gold prices held firmly above the $2,900 mark as uncertainty in the broader financial markets persisted. Should the U.S. dollar continue to weaken, gold could extend its gains in the near term. Meanwhile, oil prices remained subdued, with WTI trading below the $70 level, as Trump's aggressive trade policies cast a shadow over global demand expectations.

In the crypto space, volatility remained elevated as macroeconomic factors continued to shape risk sentiment. However, the delay in auto tariffs on Canada helped to stabilize market sentiment, lifting Bitcoin (BTC) above the $90,000 mark in the last session.

Current rate hike bets on 19th March Fed interest rate decision:

Source: CME Fedwatch Tool

0 bps (95%) VS -25 bps (5%)

Market Movements

DOLLAR_INDX, H4

Despite a series of stronger-than-expected U.S. economic reports, the U.S. dollar continued to weaken as market participants expressed doubts about the sustainability of U.S. economic growth. Many global economies are adopting aggressive stimulus plans to accelerate recovery, raising concerns that U.S. tariff policies may not provide similar short-term benefits. Additionally, the potential for retaliatory trade measures and ongoing discussions around de-dollarization further dampened sentiment toward the greenback.

The Dollar Index is trading lower while currently testing the support level. However, MACD has illustrated diminishing bearish momentum, while RSI is at 30, suggesting the index might enter oversold territory.

Resistance level: 106.40, 107.60

Support level: 105.45, 104.45

XAU/USD, H4

Gold prices have surged past the $2,920 resistance level, signaling a strong bullish breakout. The precious metal remains in high demand as market uncertainty intensifies following the Trump administrations aggressive trade policies against key U.S. trading partners. Adding to the risk-off sentiment, geopolitical tensions in Europe continue to weigh on investor confidence. Germany is set to pass a significant defense spending bill, reflecting growing concerns over the prolonged Ukraine-Russia conflict. With safe-haven demand on the rise, gold prices are likely to remain well-supported in the near term.

Gold prices have broken above the price consolidation range, suggesting a bullish signal for the pair. The RSI remains elevated, while the MACD has broken above the zero line, suggesting that gold remains trading with bullish momentum.

Resistance level: 2955.00, 3000.00

Support level: 2900.00, 2875.00

USD/CAD，H4

The Canadian economy received a boost after President Trump announced a one-month delay in auto tariffs on Canada, providing a temporary reprieve for the countrys auto sector. The extension eased trade concerns, fueling a rebound in the Canadian dollar. Meanwhile, the U.S. dollar remained lacklustre, contributing to further downside pressure on USD/CAD. The pair has dropped more than 1% from its peak on Monday, as investors recalibrate expectations amid shifting trade policies and broader market uncertainty.

USD/CAD is trailing lower and has reached a new low this week, suggesting a bearish bias for the pair. The RSI continues to slide while the MACD is poised to break below the zero line, suggesting that bearish momentum is forming.

Resistance level: 1.4355, 1.4460

Support level: 1.4265, 1.4155