President Donald Trump's recent threats
U.S. Dollar (USD): The USD has strengthened due to renewed concerns over potential U.S. tariffs. President Donald Trump's recent threats to impose tariffs on Colombia, although resolved, have heightened market sensitivity to trade policies. Additionally, the Federal Reserve is expected to maintain current interest rates, with investors closely monitoring for any indications of future rate adjustments.
Euro (EUR): The European Central Bank (ECB) is scheduled to meet this Thursday. Amidst uncertainties stemming from U.S. tariff threats, traders anticipate a possible 25 basis point cut to the key deposit rate, bringing it to 2.75%. ECB President Christine Lagarde is expected to signal the possibility of further rate cuts, depending on economic conditions.
Japanese Yen (JPY): Japan's economic policy adjustments, particularly regarding interest rates, may lead to a stronger yen. Investors are closely watching the Bank of Japan's decisions, as changes could influence the yen's valuation against other major currencies.
Australian Dollar (AUD): The Australian dollar has weakened against the USD, trading below 61.5 US cents. This decline is primarily attributed to the strengthening USD. Market expectations of U.S. interest rate cuts have diminished, impacting the AUD negatively. Additionally, potential tariff actions by China and corresponding stimulus measures may further influence the AUD's trajectory.
Cryptocurrencies: The cryptocurrency market has exhibited significant fluctuations. Bitcoin is approaching record highs, driven by anticipated favorable regulatory developments under the current U.S. administration. However, experts caution that recent market pullbacks may be temporary, with expectations of a rebound in the near future.