The European Central Bank's (ECB) decision to cut policy interest rates by 25 basis points sent ripples through the financial markets on Friday. The move, though anticipated, resulted in the EUR/USD falling below 1.0400 during the European session. Meanwhile, gold prices reached an unprecedented peak of $2,800, driven by ongoing geopolitical tensions and US President Donald Trump's persistent threats of trade tariffs. In parallel, the GBP/USD pair maintained a narrow trading range above 1.2400, influenced by a generally subdued US Dollar price action as traders monitored the evolving risk sentiment.
The ECB's rate cut is part of a broader strategy to stimulate the Eurozone economy amid cooling regional inflation in Germany. This decision weighed heavily on the EUR/USD, pushing it below the 1.0400 mark. The rate cut was widely expected by market participants, reflecting the ECB's commitment to support economic growth in the region.
In the commodities market, gold surged to a fresh all-time high of $2,800 during the European session. Demand for safe-haven assets like gold has been bolstered by President Trump's threatened trade tariffs and persistent geopolitical tensions. These factors have contributed to a robust uptrend in gold prices, which are expected to continue their ascent.
On the currency front, the GBP/USD pair remained relatively stable, trading narrowly above 1.2400. This stability is largely attributed to the broadly subdued US Dollar price action as traders digest the implications of President Trump's tariff threats and await the release of US Personal Consumption Expenditures (PCE) data. The stabilization of risk sentiment also played a role in the pair's performance.
In the cryptocurrency market, Bitcoin demonstrated resilience by hovering around $104,000 after rebounding from its 50-day Exponential Moving Average. This recovery signals renewed investor confidence in Bitcoin amid fluctuating global economic conditions.