On Monday, the euro briefly hit a three-week low amidst U.S. President Donald Trump’s looming 30% tariff threat on imports from key trading partners, only to recover slightly. This echoed in forex markets as traders remained cautious, focusing instead on awaited U.S. CPI figures projected to impact dollar dynamics significantly.
Francesco Pesole, FX strategist at ING, stressed market unwillingness to react to Trump’s tariff announcements. Despite the potential of significant policy changes within 24 hours, traders are opting for a wait-and-see approach, focusing instead on solid data like CPI figures due shortly, highlighting the precarious nature of speculative trade moves.
Cryptocurrency markets displayed more notable movement; Bitcoin surged past the $120,000 milestone as U.S. regulators prepared to discuss new digital asset legislation. Meanwhile, European and Mexican leaders denounced recent tariff declarations. Talks suggest potential trade deals may mitigate impacts, although market confidence remains tenuous with continued fears over the implications of U.S. economic policies.
(With inputs from agencies.)
