With Easter just around the corner, momentous new economic events are changing the fiscal picture. These changes are particularly significant in Central and Eastern Europe (CEE) and farther afield. Meanwhile, the Serbian central bank has decided to hold its policy rate at 5.75%. At the same time, the weakening of the US Dollar is having an obvious impact, signaling a potential bullish reversal for currency pairs. Additionally, the cryptocurrency market is witnessing substantial activity, with 15 altcoins set to unlock over $5 million each within the next week.
Former President Donald Trump made headlines in announcing recently substantial new, eco-possible tariffs. This stunning development has hence attracted concern, attention, and panic across the respective markets.
Central Bank Decisions and Currency Movements
After four consecutive hikes since April, the Serbian central bank decided to hold its policy rate at 5.75%. Yet, this decision comes as the company prepares for anticipated economic downturns. They expect the first interest rate cut as early as July. Analysts point out that by leaving the rate unchanged, it creates some continuity during unpredictable global economic times.
The recent announcement of global tariffs by US President Trump has further rattled CEE currencies. Consequently, such currencies have fixed or rapidly depreciated in value against the euro. On the above chart, the EURCZK has risen dramatically. This increase reflects a larger move, with the EURPLN heading to test the 4.08 level and the EURHUF rallying up toward 4.28 level. Movements like these imply that regional currencies are responding to greater external pressures related to international trade policy.
In Poland, monetary easing may begin as soon as May, the central bank has signaled. We believe this action will dramatically improve the economic climate of the entire region. As these new monetary policies take off, market participants will be watching their impacts on inflation and currency stability.
Cryptocurrency Market Activity
And as you can see, excitement is really building in this cryptocurrency industry. Over the next week, 15 different altcoins are scheduled to unlock more than $5 million each. Together with this upcoming release, we expand the total value unlocked to over $906 million. The TRUMP token is expected to provide more than $330 million of that staggering total.
These major unlocking events typically shake up market sentiment, causing more trading volume and drawing in volatility ready to create price swings. Unsurprisingly, investors are looking close to see how all these advances will shape the larger crypto-market’s fate.
Broader Economic Context
In Romania, the economic outlook is pointing towards an industrial slowdown, and fears of a double dip loom on growth prospects. Czechia and Slovenia to release their producer price growth for March. This information will provide a baseline for understanding what’s happening with the health of the regional economy.
These threats are exacerbated by growing fears of a US recession and, as a result, increasing speculation about imminent Federal Reserve rate cuts. Therefore, the support for the XAU/USD pair is growing amid this negative USD sentiment. This emerging trend can potentially shape how investors behave and act in conventional and digital asset markets.
With markets looking ahead to these eventualities, the GBP/USD has remained in bullish territory. On Monday in Europe, it is hovering above the 1.3150 mark. This resilience reflects broader confidence in the currency as traders navigate potential shifts in monetary policy and global economic conditions.