The US Dollar experienced a notable rebound today after US President Donald Trump hinted at the possibility of announcing reciprocal tariffs. This hint was delivered through a social media post, signaling potential impactful changes in trade policies. The prospect of new levies comes as Trump has already imposed tariffs on some of America's trading partners, with expectations that more will follow in the coming quarters.
In the cryptocurrency market, Bitcoin (BTC) is consolidating below the $100,000 level on Thursday. Despite the market fluctuations, BTC managed to erase less than 2% of its value on the day, indicating a relatively stable performance amidst economic uncertainties.
Meanwhile, in the forex market, GBP/USD has lost its bullish momentum, trading below 1.2500. Earlier in the day, the pair had posted strong gains buoyed by upbeat UK data. However, the potential for new US tariffs has created a shift in market sentiment, leading to a retreat in GBP/USD's value.
Additionally, EUR/USD is experiencing a loss of traction, retreating to the 1.0400 area ahead of upcoming US data releases. The economic policies introduced by the Trump administration are beginning to influence market dynamics significantly. The indication of reciprocal tariffs provides support for the US Dollar, contributing to the pair's downward movement.
President Trump's suggestion of reciprocal tariffs aligns with his administration's broader economic strategy. These potential changes have heightened expectations of foreign retaliation matching the proposed levies, adding another layer of complexity to international trade relationships.