Stagflation concerns and fiscal uncertainties in the United Kingdom are exerting pressure on the British Pound (GBP). As global economic dynamics shift, Bitcoin and Ethereum show signs of recovery, finding support at key levels midweek. Meanwhile, the EUR/USD pair is trading around 1.0300 during Asian market hours on Wednesday, bolstered by a softer US Dollar (USD).
The GBP/USD pair faces difficulties in building on its modest gains from earlier this week. The subdued demand for the USD provides some relief for the EUR/USD pair, which is also buoyed by anticipation of the upcoming US Consumer Price Index (CPI) report. This report remains a focal point for investors, as it precedes both UK and US CPI releases that could influence market movements.
Geopolitical risks persist, potentially lending support to precious metals amid ongoing global tensions. The market remains cautious with the incoming Trump administration reportedly considering gradual tariff hikes, adding another layer of complexity to international trade dynamics.
The cryptocurrency market sees Bitcoin and Ethereum prices recovering, yet the broader macroeconomic environment continues to weigh heavily on traditional currencies. Despite these fluctuations, key support levels have offered a degree of stability to digital assets this week.
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