Inflation fears prompt new trading practices
The March Consumer Price Index (CPI) report is expected to be a turning point — and possibly the last time inflation appears to ease. That’s the warning from economists as President Trump’s aggressive tariff strategy reshapes the market narrative. For Exness traders, this is more than a headline — it’s a signal to re-evaluate risk, opportunity, and how they approach the weeks ahead.
Sticky inflation meets tariff escalationAccording to forecasts, annual headline inflation for March is expected to cool to 2.5%, with core inflation hovering around 3.0%. Shelter costs are easing, but sticky services like insurance and healthcare are keeping the core number elevated. However, none of these figures reflect the impact of Trump’s new 10% baseline tariffs, which came into effect days ago.
China faces a unique blow: a separate 125% tariff hike targeting its exports, on top of a wave of country-specific and industry-focused tariffs. While the White House has granted a 90-day pause for some countries, the underlying policy remains aggressive.
How this impacts Exness tradersThe implications are clear — inflation is likely to rise again, and markets are preparing for it. Exness traders need to pay attention to key assets that respond quickly to these dynamics.
US Dollar pairs (e.g., DXY, EURUSD, USDJPY) may become more volatile as rate cut expectations shrink and inflationary pressures mount. If inflation surges back above 3%, the Fed could delay or even reverse dovish signals.Gold (XAUUSD) and Silver (XAGUSD) are classic safe-havens. The uncertainty around tariffs, inflation, and interest rates is already pushing demand for metals higher.US indices (US500, US30, USTEC) may rally on cooling inflation — but any spike in CPI could reverse those gains instantly. Traders should beware of false breakouts.Chinese equities on Exness, like BABA, JD.com, NIO, and XPEV, face pressure from both supply chain disruption and direct trade barriers. With 125% tariffs looming, these stocks may underperform.What to watch nextFed Chair Jerome Powell has made it clear — the Fed is in “wait-and-see” mode. If the March CPI marks a low point, expect hawkish commentary and potential volatility in fixed income and equities. Here’s what Exness traders should keep an eye on:
CPI and PPI reports over the next two months — signs of acceleration could shift market sentiment fast.Fed speeches and minutes — subtle shifts in tone may move USD pairs dramatically.Further trade policy announcements — especially if the 90-day pause on tariffs ends with another wave of duties.Emerging market currencies and commodities — particularly those tied to China and North America.Trade with insight, not reactionThis is a moment for strategy, not emotion. Volatility offers opportunity, but only for those who manage risk effectively. If you’re testing new ideas or want to analyze different inflation scenarios, try the Exness demo account with zero risk.
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