The GBP/USD pair continued its downward trajectory for the fifth consecutive session, trading around 1.2270 during Monday's Asian trading hours. This decline comes as the US Dollar Index gains strength following US President Donald Trump's tariff threats against China, Canada, and Mexico. The pair has weakened by approximately 1% as a result of the strengthened US Dollar Index.
In parallel, major cryptocurrencies Bitcoin, Ethereum, and Ripple have closed below their key support levels. Bitcoin experienced a significant drop, crashing by 4.3% at the time of writing on Monday. Meanwhile, Ethereum plummeted by 13%, and Ripple saw a decline of 12.6%. The bearish momentum for these cryptocurrencies is likely to persist, with the pair confined within a descending channel pattern.
The EUR/USD pair also continued its downward trend that began on January 27, trading around 1.0230 during the Asian session on Monday. Bets for further policy easing by the Federal Reserve have helped limit losses for commodities, providing some relief amidst the ongoing market volatility.
Concerns over President Trump's new trade tariffs have offered support to the XAU/USD pair, as investors seek safe-haven assets in response to geopolitical tensions. The rising strength of the US Dollar has cast a shadow over various markets, influencing both fiat and digital currencies.