The GBP/USD currency pair continues its downward trajectory, marking a decline for the fifth consecutive session. During Monday's Asian trading hours, the pair hovered around the 1.2270 mark. This decline is attributed to the strengthening of the US Dollar Index, which gained momentum following US President Donald Trump's recent tariff threats against China, Canada, and Mexico.
The US Dollar's increased strength has resulted in the GBP/USD weakening by approximately 1%. The bearish momentum is expected to persist as the pair remains confined within a descending channel pattern on the daily chart. Meanwhile, the EUR/USD pair is also experiencing a downward trend, which began on January 27. Trading around 1.0230 during the Asian session on Monday, the pair continues to face pressure.
In addition to currency pairs, major cryptocurrencies have faced significant declines. Bitcoin has plummeted by 4.3% as of Monday, while Ethereum and Ripple suffered even steeper crashes, with losses of 13% and 12.6%, respectively. The market turmoil is linked to broader economic uncertainties and the strengthening US Dollar.
Amidst these shifts, concerns over President Trump's new trade tariffs have provided some support to the XAU/USD pair. Despite the challenging market conditions, expectations for further policy easing by the Federal Reserve have helped limit losses for commodities.