In the ever-changing landscape of the Forex market, the US Dollar is currently experiencing a broad weakening, providing support for the GBP/USD currency pair. Meanwhile, the US repo rates have become more attractive, with bills expected to appreciate. This trend is occurring against a backdrop of renewed tariff threats from US President Donald Trump, which are contributing to a risk-off mood that may limit gains for risk-sensitive currencies like the Pound Sterling.
Gold is once again making headlines by reaching new all-time highs, recently touching around $2,955. This surge is fueled by expectations that if US yields continue to drop, further record highs for gold could be on the horizon. Additionally, President Trump has hinted at the possibility of a trade deal with China, adding another layer of complexity to the current economic environment.
The EUR/USD pair has regained some traction, nearing 1.0450 during European trading hours on Thursday. However, geopolitical tensions and tariff threats from the US may cap its upward momentum. Distinct economic dynamics are influencing markets in the US, eurozone, and UK, keeping traders on edge.
In focus are US data releases and comments from Federal Reserve officials, collectively known as Fedspeak. These elements are closely watched by investors for hints regarding future monetary policy direction. Speculation is rife that the Federal Reserve might cut rates more than anticipated, similar to recent moves by the Bank of England.
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