In a climate of global economic uncertainty, financial markets are witnessing significant movements as fears over a potential global tariff war and a slowdown in the US economy have led to risk-off flows. This has spurred an uptick in the US Dollar early this week. Meanwhile, Japanese Yen buyers remain steadfast amid expectations of diverging policies between the Federal Reserve and the Bank of Japan. The USD/JPY pair is showing signs of recovery, climbing above 147.50 early Monday.
Bitcoin, Ethereum, and Ripple are also capturing headlines with their recent volatility. Bitcoin hovers around $82,000 on Monday after a sharp decline of nearly 15% last week. Ethereum and Ripple have mirrored Bitcoin's trajectory, plunging by nearly 20% and 28%, respectively. Momentum indicators for these cryptocurrencies suggest further corrections could be on the horizon, signaling potential challenges for investors.
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Amidst these economic developments, consumer price inflation entered 2025 at a robust pace, although indications suggest some cooling occurred in February. The core index is anticipated to reflect a decrease in certain categories that experienced sharp increases in January. As inflation dynamics continue to evolve, market participants remain attentive to upcoming data releases.
Gold prices are also making headlines as they extend their range-play above $2,900 at the start of the new week. With inflationary pressures and geopolitical uncertainties influencing investor sentiment, gold retains its allure as a safe-haven asset.