The financial markets saw some major swings this week, especially related to the EUR/USD currency pair. The pair reached as high as 1.1146 mid-week before floating back down to close in the 1.1000s. This year’s volatility comes close on the heels of the United States’ own recent “Liberation Day.” Just like on this day, the seeds of a turn toward protectionist tariff policies raised the eyebrows of economists and consumers across the U.S.
At the same time, the Maker (MKR) cryptocurrency showed impressive resilience, managing to stay afloat above the $1,250 support level. Yet the altcoin’s outlook is at risk as it is in a bear flag pattern, making its battle for the market all the more difficult. One of the major stakeholders in the entire cryptocurrency ecosystem recently made waves by acquiring over $1.21 million USD worth of MKR.
Tariff Policy and Economic Impact
The recent announcement of new tariffs by the United States has turned heads around the world. If they go ahead, these tariffs will be implemented between April 5 and April 9. They are being portrayed as beyond the pale, as the most extreme protectionist and inward-looking. The ramifications could impact U.S. consumers at home and global trade relations.
Robert Habeck, German Vice Chancellor and Economic Affairs Minister, commented on the situation, stating:
“For American consumers, this day will not be a ‘Liberation Day’ but an ‘Inflation Day.’”
Indeed, this plaint is a register of general dismay that the new tariffs will raise prices for consumers and businesses as well. As the economic environment continues to change, experts will certainly be watching which of these policies are associated with a decrease in inflation without sacrificing economic growth.
It’s a muddle The most recent economic indicators out of the U.S. including jobs and consumer spending have only deepened that uncertainty. Getting back to the ISM Manufacturing PMI, it came in at 49.0 for March contraction for the manufacturing sector. Additionally, services output was weaker-than-expected, with the index falling to 50.8 from 53.5 in February. The unemployment rate edged up to 4.2%, as wage-related inflation pressures subsided more than expected.
EUR/USD Pair Analysis
The EUR/USD currency pair has showed phenomenal strength over the last several trading sessions. It is carrying on strong above all the moving averages. The 20 Simple Moving Average (SMA) still shows a bullish slope above longer-term averages which shows us persistent upward momentum.
Even after this positive precedent, technical indicators are starting to show signs of weakness following an intraday pullback. Oversees forex traders are carefully watching these developments as they anticipate possible ramifications for currency movements. The pair climbed to a mid-week high of 1.1146, a 5-year peak. Yet with the recent fall to close to 1.1000, potential areas of resistance are brought into concern.
Addresses holding between 100k and 1m MKR now make up 24.27% of Maker’s total supply. This large concentration of holdings means that a few individuals can easily sway the cryptocurrency’s price fluctuations. As such, larger players can frequently drive market trends, simply by changing their trading behaviors.
Maker’s Market Position
The Maker token price is on the verge of a bear flag pattern, hinting at further downside in the near future. Regardless, the stability above the critical $1,250 support level is still intact. The unexpected whale purchase of $1.21 million worth of MKR triggered excitement amongst traders and investors.
Thus, some crypto enthusiasts are taking this as a bullish sentiment for Maker’s price movement. The rest remain wary as it finds itself in the midst of a prevailing bearish pennant pattern. Analysts are cautioning that this fight may continue. They think it would take a paradigm shift in market sentiment or some other major force driving price movements to make it happen.