The US Dollar remained near a three-month low as of Wednesday, driven by market concerns over slowing US economic growth and the potential impact of tariffs. In early European trading hours, the GBP/USD pair witnessed mild gains, hovering around 1.2790. Meanwhile, the EUR/USD pair experienced a sharp rise, climbing 140 pips, or 1.4%, during Tuesday’s trading session.
The market's apprehension stems from fears of a deceleration in the US economy, coupled with uncertainties surrounding tariff implications. These developments have led investors to sell off the US Dollar, intensifying the downward pressure on the currency. Additionally, there is speculation that US President Donald Trump may retract his aggressive tariff stance, further influencing market sentiment.
Amid these dynamics, the prices of gold have shown resilience, maintaining a position above the $2,900 mark early on Wednesday. This stability in gold prices reflects investor interest in safe-haven assets amid ongoing economic uncertainties.
It is important to note that the views and opinions expressed in this article belong solely to the authors and do not necessarily represent FXStreet's official policy or position. Furthermore, FXStreet and its authors are not registered investment advisors, and this article is not intended to serve as investment advice. Advertisers associated with this article are not necessarily affiliated with FXStreet.