Bitcoin continues its bullish stride, extending its recovery and trading above the pivotal $92,000 mark on Thursday. A recent Glassnode report emphasizes that this price point is crucial for determining the market's reaction. Should Bitcoin falter, $71,000 is identified as a critical support level. Over the past two days, the cryptocurrency has rallied an impressive 5%, demonstrating robust investor confidence.
Meanwhile, gold prices are experiencing a period of consolidation, settling around $2,900 for the second consecutive day. Investors keep a vigilant eye on the all-time high of $2,956, with market dynamics suggesting potential volatility ahead.
In trade news, there is potential relief for Canada and Mexico as car import tariffs into the United States face possible delays. However, reciprocal tariffs remain on schedule to commence in April, maintaining a tense trade environment. The situation contributes to the cautious market mood observed in currency markets.
The European Central Bank (ECB) reveals plans to implement another 25 basis points cut, announcing its March interest rate decision at 13:15 GMT on Thursday. Following the policy meeting, the ECB opted to lower the benchmark rate on the deposit facility from 2.75% to 2.5%. This decision aligns with ongoing efforts to stimulate economic growth amid prevailing challenges.
The mid-tier US jobs data and remarks from Federal Reserve officials take center stage as investors seek clues about future monetary policy directions. Concurrently, the GBP/USD pair experiences downward pressure, slipping below 1.2900 during the European session on Thursday. This movement reflects the cautious market sentiment driven by concerns over economic slowdown induced by President Trump's tariff policies.
The US Dollar remains under pressure as it consolidates weekly losses against a backdrop of global economic uncertainties. Traders continue to navigate a complex landscape influenced by shifting policies and economic indicators.