The US Dollar faces renewed selling pressure in light of former President Donald Trump's tariff-induced economic slowdown concerns. As global markets digest the implications of his economic maneuvers, the sentiment surrounding the USD remains fragile. This comes amid Trump's decision to impose 25% levies on all Mexican and Canadian imports, affecting the North American car industry, though these tariffs are delayed by a month. The lack of clarity and perceived seriousness in these decisions are expected to significantly impact US growth prospects.
Global markets have responded to Trump's tariff actions with a mix of apprehension and relief. Initially, there was concern when Trump turned his threat into reality by imposing the tariffs. However, the subsequent decision to delay their implementation has been received positively, suggesting a temporary respite for industries affected by these measures.
In the currency markets, the GBP/USD pair has shown resilience, picking up bids to regain 1.2900 during the early European session on Thursday. Meanwhile, in the cryptocurrency space, Chainlink (LINK) has extended its gains by more than 4%, trading around $17.22. LINK has surged nearly 13% over the last two days, bolstered by on-chain data indicating a rally ahead as its long-to-short ratio reaches its highest monthly level. Additionally, LINK's funding rates remain positive, providing further support for its upward trajectory.
Bitcoin has also experienced a notable recovery, trading above $92,000 on Thursday after rallying 5% over the past two days. A report from Glassnode underscores that Bitcoin's market reaction is closely tied to maintaining this level, with $71,000 identified as critical support should BTC face any declines. Concerns surrounding Trump's tariff policies have continued to act as a tailwind for safe-haven bullion, as investors seek refuge amid the ongoing economic uncertainty.