Bitcoin's price consolidated below the $100,000 mark on Thursday, as financial markets braced for potential economic shifts. The US Dollar gained strength from optimistic economic data and a cautious market mood, driven by US President Donald Trump's hint at the introduction of reciprocal tariffs. President Trump suggested that these tariffs could be announced later in the day, a move that further bolstered the USD and caused currency pairs to trend lower.
The anticipation surrounding President Trump's potential tariff announcements created ripples across multiple markets. Gold, despite struggling to gather significant bullish momentum, managed to cling to small gains above $2,900. The GBP/USD pair lost its earlier bullish momentum, retreating below 1.2500 after enjoying significant gains on favorable UK economic data earlier in the day. Meanwhile, EUR/USD faced challenges gaining traction, trading near 1.0400 during the American session.
President Trump's administration has already taken steps by imposing tariffs on some of America's trading partners. These moves indicate a broader strategy of economic policy under his leadership, with more levies anticipated. Such measures are expected to be met with foreign retaliation in the coming quarters, causing uncertainty in global markets.
The cautious sentiment surrounding the impending tariff announcements also helped XAU/USD maintain its position in the latter half of the day. As Trump's economic policies continue to unfold, investors and market participants remain vigilant, assessing potential impacts on global trade dynamics and financial markets.
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