Bitcoin's market activity remains a focal point as it extends its recovery, trading above $92,000 on Thursday. A recent Glassnode report highlights that Bitcoin's market reaction is crucially linked to the $92,000 mark. If Bitcoin experiences a downturn, $71,000 serves as a critical support level. Over the past two days, Bitcoin has rallied by 5%, showcasing its volatile yet resilient nature.
In the precious metals market, gold prices are consolidating for the second consecutive day, hovering around $2,900 on Thursday. Investors are keeping a close watch on gold's all-time high of $2,956. The consolidation phase reflects the cautious market mood as traders assess the broader economic landscape.
In other economic developments, there might be some relief for Canada and Mexico as the United States considers delaying car import tariffs. However, reciprocal tariffs are still scheduled to take effect in April. This delay could provide temporary respite for North American trade relations.
Additionally, the European Central Bank (ECB) is poised to implement another 25 basis points cut. The ECB is set to announce its March interest rate decision on Thursday at 13:15 GMT. Following its policy meeting, the ECB reduced the benchmark rate on the deposit facility from 2.75% to 2.5%, aiming to stimulate economic activity in the Eurozone.
In the currency markets, the GBP/USD pair returns to the red, slipping below 1.2900 during the European session on Thursday. The US Dollar is consolidating weekly losses amid concerns of an economic slowdown induced by President Trump's tariffs. A cautious market mood continues to weigh on currency pairs, impacting forex trading dynamics.
Mid-tier US jobs data and Fedspeak are next on investors' radar, as they seek insights into future economic conditions and monetary policy directions. These indicators are crucial for gauging the health of the US economy and potential shifts in Federal Reserve's policy stance.