During the Thursday European trading session, EUR/USD remained solidly above the important 1.1700 level in value. Part of this increase was due to a weakening US Dollar. Stability reigns even as worries about US tariffs persist. President Donald Trump’s capricious trade policies so far have set the world economy on edge.
The Dollar has faced real resistance by the growing storm of economic uncertainty. Moreover, far exceeding early market expectations, new tariffs imposed by the Trump administration have roiled several Asian economies. Investors should be particularly attuned to the ramifications of these tariffs. They understand that these changes have the potential to radically transform trade trajectories within the entire region.
Asian countries hit hardest The new trade measures are a one-two punch. Yet Singapore, India, and the Philippines are still eerily silent. In return, they stand to benefit substantially from tariff concessions themselves, should negotiations proceed in a favorable direction.
As market participants await upcoming remarks from Federal Reserve officials and mid-tier US economic data, attention is shifting towards potential catalysts for trading momentum. EUR/USD is a trade that follows the direction of the US Dollar almost tick-for-tick. Unfortunately this currency is now having to pay the price for a myriad of economic issues.
Besides the stability of the EUR/USD pair, the GBP/USD cross showed a remarkable strength, trading with light increases above the 1.3600 level. “GBP/USD stays well bid above 1.3600 as US Dollar continues to sag,” reported FXStreet. This trend is especially damning of the more macro underpinnings of the US currency, as one looks at US currency under siege from trade-related pouting.
Gold prices in the commodities sector have been rising steadily during the trading day. This increase is supported by a stronger USD and continued global trade tensions. “Gold price builds on steady intraday ascent amid softer USD, trade worries,” as noted by market analysts. This move is part of a broader trend towards safe-haven assets, as a wary investor class continues to flock to safe-haven assets.
In the crypto exchange space, Cardano market is looking for a new bullish market action after Bitcoin gained record high levels. “Cardano bulls eye for a rally as Bitcoin hits new record highs,” according to FXStreet. This latest news reflects a trend in increased demand for digital currencies in general as alternative investment vehicles in the face of traditional market uncertainty.
As traders continue to wait and see how situations unfold, the aftermarket sentiment has been skittish at best. President Trump’s trade policies usher in a big unknown that disrupts the market landscape. These uncertainties drive volatility in the currency and commodity markets.