The US Dollar continues its upward trajectory, exerting significant pressure on the GBP/USD pair, which has been in a downtrend for the fifth consecutive session. As of Monday, during the European trading session, the pair is trading near 1.2300. The strength of the US Dollar can be attributed to recent trade tariff announcements by US President Donald Trump, which have not only bolstered the currency but also negatively impacted market risk sentiment.
The announcement of new tariffs has created a surge in demand for the US Dollar as a safe-haven asset. This heightened demand has also placed the EUR/USD pair under considerable bearish pressure, with the pair trading near 1.0250. Market participants are closely monitoring these developments as they navigate the shifting landscape of international trade and its implications on currency valuations.
Gold prices have shown resilience amid these market fluctuations, recovering from intraday losses and climbing back closer to the $2,800 mark during the European session. The recovery in gold prices highlights the metal's role as a traditional safe-haven asset amid uncertainties in the financial markets.
While the analysis provides insights into recent market movements, it is important to note that this article does not serve as investment advice. Neither the author nor FXStreet are registered investment advisors, and the views expressed herein do not necessarily reflect the official policy of FXStreet.