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Market Update: March 4, 2025

Euro and Pound Under Pressure The EUR/USD is struggling to gain traction, treading water below 1.0500 as a cautious mood prevails. Similarly, GBP/USD remains on the defensive below 1.2700, weighed down by escalating fears of a global trade war sparked by U.S. policy shifts. Both currencies are feeling the heat as safe-haven flows dominate. Aussie Yen Faces Tariff Risks The AUD/JPY pair is hovering near 93.00, with downside risks mounting amid concerns over potential U.S. tariffs. The Australian dollar’s sensitivity to trade tensions is keeping the pair vulnerable, while the yen draws strength from its safe-haven status. Gold Eyes $2,900 Breakout Gold prices are trading with a slight negative bias below $2,900, despite some dip-buying in the U.S. dollar. Bulls are holding back, waiting for a decisive move above this key level to signal fresh upside momentum. Trade uncertainties are supporting gold’s appeal, but conviction remains elusive. Crypto Feels the Heat Cryptocurrencies took a $1.1 billion hit in a 24-hour sell-off, triggered by Trump’s tariff rhetoric—just a day after his proposal for a U.S. crypto strategic reserve. The whiplash from policy uncertainty is shaking out weaker hands in the digital asset space. Outlook Markets are on edge as tariff threats loom large. EUR/USD and GBP/USD are stuck in a rut, AUD/JPY teeters on the brink, and gold awaits a breakout. Crypto’s sharp drop underscores the fragility of risk assets in this climate. With trade war fears driving sentiment, investors are leaning toward caution, eyeing U.S. policy moves for the next cue. More to follow as the situation develops.

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Publication date:

2025-03-04 12:09:38 (GMT)

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