The US Dollar saw a rebound on Thursday as President Donald Trump hinted at potential reciprocal tariffs, sending ripples through the financial markets. In a social media post, Trump suggested that an announcement regarding these tariffs could be imminent. This statement led to fluctuations in currency pairs, while Bitcoin's price remained relatively stable below the $100,000 mark.
Bitcoin consolidated below the $100,000 level, erasing less than 2% of its value on the day. Despite the slight dip, Bitcoin's price held steady amid the broader market fluctuations triggered by Trump's tariff hint.
The GBP/USD currency pair experienced a loss of bullish momentum, trading below the 1.2500 threshold. This decline followed earlier robust gains spurred by optimistic UK economic data. The upbeat reports initially provided a boost to sterling, but the potential tariff announcement by Trump overshadowed these gains.
Similarly, the EUR/USD pair lost traction and retreated to the 1.0400 area as investors anticipated upcoming US data releases. The retreat highlighted market concerns over the potential impact of new tariffs on trade relations between the US and its partners.
President Trump's indication of reciprocal tariffs contributed to a decline in these currency pairs, demonstrating the market's sensitivity to trade policy announcements. The anticipation of official confirmation later in the day further intensified the market's cautious stance.