In a significant market shift, Bitcoin, Ethereum, and Ripple all closed below their key support levels amid a broader financial market downturn. The cryptocurrencies experienced notable percentage declines, with Bitcoin falling 4.3%, Ethereum plunging 13%, and Ripple dropping by 12.6%. Meanwhile, in the foreign exchange market, the EUR/USD pair declined toward 1.0200 as the US Dollar gathered strength following tariff announcements by President Donald Trump. The tariffs targeted imports from Canada, Mexico, and China, triggering a widespread negative risk mood across markets.
The impact of the tariffs was felt strongly in the forex markets. EUR/USD's decline was largely attributed to the strengthening of the US Dollar, spurred by the tariff news. Similarly, GBP/USD faced its fifth consecutive session of decline, trading below 1.2300 due to the bolstered US Dollar. The announcement led to a shift in risk sentiment, further pressuring these currency pairs.
Gold also reacted to the changing market dynamics. Having recently achieved a record-high above $2,810 on Friday, gold prices pulled back below $2,790 early Monday. The US Dollar's rise, driven by the President’s tariff decisions, contributed to gold's decline as XAU/USD moved lower.
The tariffs announced by President Trump have created ripples across various financial sectors. As markets adjust to the new trade landscape, the US Dollar has emerged stronger, affecting traditional safe-haven assets like gold and major currency pairs alike.