The trade-weighted DXY has broken to a new low for the year as investors continue to fear what these new reciprocal tariffs mean for US confidence and activity, ING's FX analyst Chris Turner notes.
Gold price (XAU/USD) snaps under pressure from the selling orders on Thursday, selling off over 1.25% towards $3,095 at the time of writing. Traders are taking profit, pushing the Bullion price below important pivotal levels.
Euro (EUR) jumped post-tariff announcement. Reciprocal tariff rate of 20% on EU was largely in line with street’s estimates. EUR was last seen at 1.0964 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
EUR/USD is net around 0.9% higher after the trade announcement. The main buying point for the euro is that it's a big, liquid alternative to the US Dollar – and that the dollar's troubles (weaker US consumption) are greater than the Euro's, ING's FX analyst Chris Turner notes.
The Pound Sterling (GBP) surges to near 1.3200 against the US Dollar (USD) during the North American trading hours on Thursday, the highest level seen in almost six months.
European Central Bank (ECB) Vice President Luis de Guindos said on Thursday, “in terms of monetary policy, this uncertainty means we need to be extremely prudent when determining the appropriate stance.”
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