The financial markets are witnessing heightened volatility as US President Donald Trump's recent tariff threats continue to exert pressure on global currencies and commodities. The US Dollar remains in high demand amidst the unfolding trade tensions, driven by a memorandum that initiated a comprehensive investigation into the United States' trade relationships. This memorandum has brought China, Canada, and Mexico into the immediate spotlight, further fueling market uncertainties.
Bitcoin's price dynamics have been notably impacted since President Trump's inauguration. Initially, Bitcoin prices experienced a swift correction, as evidenced by data from Santiment. This correction momentarily paused the excitement and fear of missing out (FOMO) among traders visible on social media platforms. Despite this correction, Bitcoin managed to stabilize above the $102,000 mark on Tuesday, following a new all-time high of $109,588 recorded just a day earlier.
Meanwhile, gold has emerged as a safe haven, trading at its highest level since early November, surpassing $2,720 on Tuesday. This surge in gold prices reflects investors' shifting focus towards more stable assets amid the prevailing market uncertainties.
In the currency domain, the GBP/USD pair is experiencing bearish pressure, trading below the 1.2300 level. This comes as the ILO Unemployment Rate in the UK increased to 4.4% in the three months leading up to November. The benchmark 10-year US Treasury bond yield has also shown significant movement, dropping more than 1% below 4.6%, further highlighting the market's reaction to Trump's tariff rhetoric.
It is important to note that neither the author nor FXStreet serves as registered investment advisors. This article is not intended to provide investment advice but rather offers an objective overview of the current market conditions.