The US Dollar showed resilience on Thursday, rebounding after President Donald Trump hinted at the imminent announcement of reciprocal tariffs through a social media post. This development has provided a boost to the USD, notably influencing key currency pairs and the broader financial market. The President's statement indicates that the economic policies of his administration are starting to take shape, with expectations of further levies on America's trading partners in the coming quarters.
The hint from President Trump caused movements in various currency pairs. The GBP/USD pair, which had earlier posted strong gains following upbeat UK data, lost its bullish momentum, falling below the 1.2500 mark. Meanwhile, EUR/USD lost traction, retreating to the 1.0400 area ahead of forthcoming US economic data releases. These fluctuations underscore the impact of the anticipated tariffs on market dynamics.
In addition to currency movements, the cryptocurrency market also reacted to the news. Bitcoin (BTC), for instance, consolidated below the $100,000 level on Thursday, erasing less than 2% of its value on the day. This consolidation reflects the market's cautious stance amid potential policy changes.
President Trump's announcement of tariffs on some of America's trading partners has set the stage for foreign retaliation. As the USD strengthens on tariff expectations, international markets are preparing for possible responses from affected countries. This complex interplay highlights the far-reaching implications of trade policies under the current administration.