Global markets experienced a dynamic session on Thursday as risk-on sentiment drove key movements, notably affecting currency pairs and commodity prices. The US Dollar faced considerable selling pressure, influenced by traders' optimism surrounding potential Russia-Ukraine peace talks. Meanwhile, trade tensions edged closer to Europe as former President Donald Trump imposed a 25% import tax on all steel and aluminum entering the United States, adding another layer of complexity to the global economic landscape.
Despite these geopolitical tensions, the BTC price showed resilience, consolidating below the $100,000 mark and erasing less than 2% of its value. In contrast, gold prices continued their upward trajectory, rallying near $2,920. Bullion traders remained unfazed by the latest US Consumer Price Index data for January, choosing instead to focus on broader market trends.
In the forex market, the EUR/USD pair sustained a strong bid above 1.0400 during the European session, undeterred by dismal Eurozone industrial data. The Pound Sterling also capitalized on the improving risk mood, bolstered by robust UK economic data. The UK economy expanded at an annual rate of 1.4% in the fourth quarter, exceeding forecasts of 1.1%. Consequently, GBP/USD maintained its bullish momentum, trading close to 1.2500.
Traders are closely monitoring developments as trade tensions threaten to impact Europe. The imposition of tariffs by the United States has raised concerns about potential retaliatory measures and their implications for global economic stability.