The year has barely begun, yet the market is already feeling the turbulence of Donald Trump's second term in office. Uncertainty surrounding US trade policy continues to exert pressure on the Euro, which is trading on a softer note around 1.0375 during the Asian session on Friday. The risk-off sentiment further exacerbates the situation for the Euro, while a subdued USD price action favors bulls in the current market environment.
Traders remain vigilant as they anticipate the release of crucial data, particularly the German Industrial Production figures and the US Nonfarm Payrolls report due on Friday. These reports are pivotal, offering insights into economic health and guiding market movements. The author of this analysis draws a comparison between the current market conditions and an episode of the TV show "House of Cards," reflecting the complex and unpredictable nature of global financial markets.
Meanwhile, the XAU/USD pair finds support from bets on a potential Fed rate cut and depressed US bond yields. These factors create a favorable backdrop for gold prices, as investors seek safe-haven assets amid ongoing volatility. The views and opinions expressed in this article are solely those of the authors and do not reflect the official policy or position of FXStreet or its advertisers.
It is important to note that neither the author nor FXStreet is a registered investment advisor. This article is not intended to serve as investment advice. Readers are encouraged to conduct their own research or consult with a professional before making investment decisions.