The US Dollar's recent upswing has lost momentum, despite prevailing global risk aversion. In the European session on Monday, the EUR/USD pair gained traction, buoyed by a positive German IFO survey. However, expectations of a potential rate cut by the European Central Bank (ECB) have capped the pair’s recovery below the 1.0500 mark. Meanwhile, the broader financial markets have reacted to escalating trade tensions following US President Donald Trump's announcement of tariffs on imports from Colombia.
The EUR/USD pair's renewed upside reflects fresh demand amid a faltering US Dollar recovery, as global stocks continue to decline. Investors are on edge due to President Trump's tariff plans, which have revived fears of a trade war and further intensified risk aversion. Concurrently, the GBP/USD pair has managed to recover some ground, trimming losses to regain the 1.2450 level during the European session.
In the cryptocurrency market, Bitcoin has experienced a significant downturn, falling nearly 4% and dipping below the $100,000 support level. This follows its previous all-time high of $109,588 attained last week. The overall crypto market has seen a surge in liquidations, with total liquidations reaching $860.55 million within the past 24 hours. The sudden price decline has sent ripples through the digital asset space, reflecting heightened volatility.
As for commodities, gold prices have rebounded from their intraday losses but continue to trade with a slight negative bias. The precious metal is hovering around the $2,760 area during the first half of Monday's European session. This movement indicates investors' cautious approach amidst global economic uncertainties and fluctuating market conditions.