The goods trade balance in the United States for January was $-153.3 billion, falling short of anticipated $-114.7 billion. This represents a wider deficit than expected.

In related updates, EUR/USD is stabilising around the 1.0400 mark after the release of PCE inflation data. Gold has reached a low point of below $2,840, influenced by ongoing uncertainties regarding trade policies.

GBP/USD retains a positive trend just above 1.2600 following the inflation data. The upcoming week will focus on US payroll statistics, the ECB’s rate meeting, and ITV’s results amidst renewed concerns about tariffs from the Trump administration.

The larger-than-expected trade deficit in the United States suggests that imports surpassed exports by a greater margin than analysts had predicted. This often puts downward pressure on the dollar, as more capital is flowing out of the country. However, the market does not always react immediately, and we must consider whether this widening deficit will push policymakers towards structural adjustments.

Meanwhile, the euro is holding steady around 1.0400, which indicates that traders have largely priced in the latest core PCE inflation reading. Given that this measure of inflation is one the Federal Reserve watches closely, its impact on rate expectations is key. If inflation remains persistent, it strengthens the case for tighter monetary policy, potentially affecting dollar strength. For now, the market appears to be digesting the numbers rather than reacting forcefully.

Gold has dipped below $2,840, weighed down by concerns over trade policy. The precious metal has long been a hedge during uncertain periods, and traders clearly remain unsettled by the direction of global trade discussions. If further restrictions or tariffs materialise, gold could see renewed buying, but in the immediate term, sentiment seems to be leaning towards caution rather than panic.

Sterling remains slightly above 1.2600, reflecting continued optimism after the latest inflation figures. The upcoming week will be key in determining whether this momentum holds. With US payroll data on the horizon, we are likely to see some shifts in dollar positioning. Additionally, the ECB is set to discuss interest rates, which could impact euro crosses, indirectly influencing GBP trends as well. Traders would do well to stay alert to any policy signals that diverge from expectations.

On the corporate front, ITV’s earnings report will be closely watched. Beyond the numbers themselves, the broader discussion around advertising revenue and economic outlooks will be telling. At the same time, renewed import restrictions proposed by the Trump camp could unsettle broader markets, especially if they hint at widespread protectionist measures. These elements combined mean traders should brace for potential volatility across multiple asset classes in the days ahead.