Traders are keenly eyeing the European Central Bank (ECB) Minutes, the revision of the US GDP, and statements from US President Donald Trump for market signals. Inflation trends suggest easing, particularly in France, following a significant reduction in regulated electricity prices. However, a strong US Dollar and a cautious market sentiment are exerting downward pressure on the EUR/USD pair, which is trading below 1.0500 during European trading hours on Thursday.
President Trump's recent remarks on tariffs have injected volatility into the markets. His ambiguous comments during a cabinet meeting on Wednesday left investors uncertain about the specifics of future levies, including which countries might be affected and when these measures might take effect. This uncertainty has contributed to a recovery of the US Dollar, further impacting the EUR/USD.
Disinflation appears to be spreading across various sectors, yet service prices in France continue to rise swiftly. Concurrently, the US Dollar's strength has been bolstered by President Trump's inconsistent messages regarding tariffs, creating a complex trading environment. As a consequence, the EUR/USD pair is grappling with a sustained recovery of the US Dollar.
Gold prices are also experiencing turbulence, facing significant selling pressure and dropping to a ten-day low near $2,880 on Thursday. In addition to the EUR/USD pair's struggles, the GBP/USD pair has also seen a dip, trading below 1.2700 during European trading hours.
Investors remain cautious as economic indicators and political developments unfold. The ECB Minutes and US GDP revision are anticipated to provide further insights into the economic landscape. Meanwhile, traders continue to monitor President Trump's statements closely for any clarity on trade policies and their potential implications.