Brent Crude oil prices are exhibiting a slightly bullish trend, hinting at a potential double bottom pattern amidst geopolitical tensions and economic uncertainties. US President Donald Trump's recent tariff threats on imported goods have intensified the market's risk-off sentiment, leading investors to seek refuge in safer assets. This shift has bolstered the demand for safe-haven bullion while repo rates in the US have become more appealing, causing bills to appreciate. Meanwhile, economic indicators and commentary from the Federal Reserve remain critical points of focus for investors.
In European trading hours on Thursday, the EUR/USD pair held steady above 1.0450, despite being under pressure from President Trump's tariff threats and ongoing geopolitical tensions. The Fed's potential move to cut rates more aggressively than anticipated mirrors the UK's recent actions, adding another layer of complexity to the market dynamics. The European Central Bank (ECB) recently lowered interest rates at the end of January, a decision that continues to influence currency movements as uncertainties surrounding the Ukraine-Russia conflict stall economic growth.
The geopolitical landscape is increasingly overshadowing technical factors, as tensions between Ukraine and Russia escalate. The Euro has emerged as the weakest currency, depreciating against all major counterparts. Nonetheless, a modest downtick in the US Dollar has provided some support to the EUR/USD pair.
Moreover, the renewed tariff threats from President Trump have created a broad risk-off mood across global markets. This sentiment has also impacted risk-sensitive currencies like the Pound Sterling, limiting its potential gains. In contrast, Gold prices surged to a fresh all-time high during the early European session on Thursday, confirming a breakout from a short-term trading range.