The US Dollar maintains its robust position, exerting pressure on the GBP/USD pair amid a negative shift in market sentiment. This shift follows US President Donald Trump's recent announcements of imposing tariffs on imports from Canada, Mexico, and China. As a result, safe-haven demand for the US Dollar has increased significantly. The GBP/USD pair has been trading near the 1.2300 level for five consecutive sessions, reflecting the dollar's strength against the British pound.
President Trump's tariff decisions have sent ripples through global markets, impacting various sectors. The crypto market, in particular, has felt the strain, with XRP trading well below the USD 2.0000 mark. Other cryptocurrencies such as Cardano and Solana continue to struggle, trading in red on Monday after experiencing over a 15% decline in the previous week. These developments suggest that the overall crypto space has lost some of its previous momentum.
Equities also faced challenges, with most indices opening lower at the start of the week. The European Union, however, is expected to withstand these economic headwinds without major repercussions. Meanwhile, the EUR/USD pair remains under heavy bearish pressure, trading near 1.0250 during European sessions on Monday.
In contrast to other markets, gold prices have shown resilience. After recovering a significant portion of intraday losses, gold prices climbed back towards the $2,800 mark during the first half of the European session on Monday. This recovery highlights gold's traditional role as a safe haven in times of economic uncertainty.
The tariffs imposed by President Trump have raised concerns about potential economic fallout, further exacerbating market volatility. Investors are now keenly awaiting key economic data and decisions later this week. The UK Bank of England's interest rate decision is scheduled for Thursday, 06th at 13:00 CET, followed by the US Non-Farm Payroll employment data release on Friday, 07th at 14:30 CET. These events are likely to play a crucial role in shaping market trends going forward.