In a significant policy move, former President Donald Trump ordered a 25% import tax on all steel and aluminium entering the United States. This decision has intensified trade tensions, which are now beginning to edge closer to Europe. Despite these pressures, Euro buyers remained undeterred as Eurozone industrial figures did not sway the market significantly.
The Euro continued to hold its ground, with the EUR/USD pair maintaining substantial gains above the 1.0400 mark. At press time, the currency pair was up by 0.39% on the day, reflecting a resilient market sentiment in favor of the Euro. In parallel, the Pound Sterling also reaped benefits from the ameliorating risk mood and positive economic data from the United Kingdom.
The UK's economy showcased resilience by expanding at an annual rate of 1.4% in the fourth quarter, surpassing market expectations of 1.1%. This upbeat data supported GBP/USD, which sustained its bullish momentum and traded near 1.2500 during the European session. Meanwhile, Eurozone Industrial Production saw a downturn, dropping at an annual rate of 2% in December and declining 1.1% month-over-month.
The release of the US Consumer Price Index (CPI) data for January added another layer to the economic landscape on Wednesday. However, despite these developments, the EUR/USD stayed well bid above 1.0400 in the European session, suggesting that market confidence in the Euro remained strong amidst fluctuating economic indicators.
As global markets reacted to these developments, gold prices resumed their rally, climbing towards $2,920 at the time of writing on Thursday. The precious metal continued to attract investors seeking safe-haven assets in uncertain times.