Amidst a landscape of economic policy adjustments and political tensions, global markets are witnessing significant shifts. Concerns about U.S. President Donald Trump's tariff plans have driven investors towards gold, with the precious metal reaching a fresh record high on Friday. Concurrently, the European Central Bank (ECB) has cut its policy interest rates by 25 basis points, a move that aligns with market expectations and signals the continuation of its rate cut cycle.
The ECB's decision, anticipated by economists, reflects ongoing efforts to stimulate economic growth in the region. Meanwhile, in Australia, expectations for a possible interest rate cut by the Reserve Bank of Australia (RBA) next month are gaining traction. This sentiment is fueled by indicators of easing inflationary pressures.
In Asia, China's economic challenges are limiting the performance of the Australian dollar (AUD), despite its slight upward movement against the U.S. dollar (USD) during the Asian session on Friday. However, this increase lacks strong bullish momentum. Simultaneously, the USD is displaying modest strength, while the USD/JPY pair remains subdued for the third consecutive day, hovering near its monthly low. This decline is partly due to concerns over Trump's tariff plans impacting both global and domestic growth, which in turn, restrains the Japanese yen (JPY).
Elsewhere in the cryptocurrency market, Ripple's XRP saw a 2% rise during the Asian session on Friday. Additionally, the New York Stock Exchange Arca has submitted a filing with the U.S. Securities and Exchange Commission to convert Grayscale's XRP Trust into a spot ETF, potentially paving the way for broader market participation.
In Japan, bets for further rate hikes by the Bank of Japan (BoJ) are supported by an increase in core consumer prices in Tokyo, indicating potential inflationary pressure. This development underscores the BoJ's ongoing assessment of economic conditions to guide its monetary policy decisions.