The EUR/USD continued its downward trajectory for the fourth consecutive trading day on Thursday, marking the end of the Euro's recent bull run. This decline coincided with the European Central Bank's decision to cut interest rates by 25 basis points, a move anticipated by market analysts. Meanwhile, gold prices surged, reaching nearly $2,800 per ounce troy as the U.S. dollar's offered stance and persistent tariff threats spurred safe-haven inflows.
The ECB's rate cut comes as no surprise, given the ongoing economic challenges facing the Eurozone. This monetary policy adjustment aims to stimulate growth and counteract inflationary pressures. However, it has also contributed to the weakening of the Euro against the dollar. The EUR/USD's continued decline highlights market reactions to these changes in monetary policy.
Simultaneously, gold has emerged as a preferred safe-haven asset amid increased uncertainties and the looming threat of U.S. tariffs. Investors have flocked to the precious metal, driving its price to record highs. The inverse relationship between gold and the U.S. dollar has played a significant role in this upward trend, with the Greenback's offered stance amplifying gold's appeal.
In the cryptocurrency market, Ethereum witnessed a 3% increase on Thursday. The digital currency is eyeing a potential rally to $4,300, contingent upon overcoming resistance from a falling wedge pattern. This price growth follows community support for researcher Danny Ryan's potential appointment as executive director of the Ethereum Foundation, signaling positive sentiment within the Ethereum community.
Despite these developments, the article emphasizes that it does not constitute investment advice. The views expressed are those of the authors and do not necessarily align with FXStreet's official policy or position. Readers should seek personalized financial guidance from registered investment advisors before making any investment decisions.