The financial markets were a bit jumpy too, as many important changes came into focus this week. Gold prices are recovering after falling from Monday’s all time highs of $3,245. This amazing price jump indicates a strong but complicated market sentiment towards precious metals. The US Dollar is taking a breather from its recent downtrend. Traders are still processing the implications of former President Donald Trump’s weekend announcement on tariffs, especially concerning the significant changes to China Bound tariffs.
On Monday, Bitcoin’s price soared close to a key resistance point at $85,000. Most analysts are optimistic that if it overcomes this resistance point, a major bullish run will ensue. The Australian Dollar (AUD) US Dollar (USD) exchange rate is on the front foot as week starts, AUD/USD rate trading close to 0.6300 during Asian trade on Monday. The rally itself represents a pretty favorable start to the week for the Aussie currency.
The FOMC and the Bank of Japan have a different monetary policy outlook. This divergence is putting extreme pressure on the Japanese Yen. USD/JPY has begun to bounce back from its sharp drop. On Monday’s Asian trading, it managed to break back above the 143.00 handle.
Recent moves in the crypto market have shown that digital assets are here to stay. As we discussed last week, both Ethereum and Ripple held firm at their crucial support levels. That’s a good sign, as it can mean a recovery is starting to emerge. Those advances are partial and constrained by continued fears over the Trade War with China.
On the campaign trail, Trump called for lowering tariffs on Chinese electronics and chips. This step helped calm markets and dramatically increased risk appetite. Wall Street hit record highs after Trump delayed tariffs, showing that investor confidence is reacting strongly to what their leaders are doing right now. This is part of the reason the most recent market data and recent Chinese exports had helped to continue to drive this bullish sentiment in March.
Caution remains among traders as they adjust to these new dynamics. Like us, thousands are watching closely as this story develops. In fact, they’re more worried than you, as 81.4% of retail investor accounts lose money when trading Contracts for Difference (CFDs) with this provider.