USD/CAD and Trade Tensions
The USD/CAD pair witnessed a notable rise, extending its streak to a third consecutive day, as market participants anticipate the impact of President Trump's reciprocal tariffs set for Liberation Day. The looming tariffs have stirred concerns about potential negative repercussions on the Canadian economy, pushing the pair to a peak near 1.4360. This development signals heightened caution among investors as they navigate through the uncertainties brought forth by trade policies.
Gold Hits Record Highs
In response to escalating trade tensions and impending tariff deadlines by the U.S., gold has surged to unprecedented levels, demonstrating its status as a safe-haven asset. The price of gold soared past $3,100 per ounce, reflecting investors' flight to safety amidst economic uncertainties. This trend was further fueled by a general risk-off mood in the market, propelling gold to new record highs repeatedly over the week.
USD/JPY and Market Volatility
The USD/JPY pair experienced a pullback, undoing its previous gains as the market adopts a more risk-averse stance. This shift in sentiment is largely attributed to the nervousness surrounding the U.S. 'Liberation Day' tariffs and their broader economic implications. The pair fell below the 149.00 mark, indicating a bearish outlook as traders seek refuge in safer assets.
Silver and Safe-Haven Demand
Similarly, silver prices have climbed, with XAG/USD reaching above $34.00. The increase in silver prices aligns with the overall trend in precious metals, which are benefiting from the current geopolitical and economic uncertainties. As with gold, silver is experiencing increased demand as a safe-haven investment.
EUR/USD Amid USD Fluctuations
The EUR/USD pair has shown little movement, trading sideways as the forex market anticipates the effects of the upcoming U.S. tariff announcements. With the U.S. dollar weakening for three consecutive days, the pair remains in a consolidation phase, reflecting the market's wait-and-see approach to the unfolding trade narrative.
