The foreign exchange and cryptocurrency markets saw significant movement as the euro rebounded, Bitcoin surged, and North American currencies gained strength amid key geopolitical and economic developments.
The euro bounced back from a 2.5-week low, climbing 0.4% to $1.0417, after European leaders signaled a renewed push for peace in Ukraine. This momentum followed a diplomatic clash between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy, which had previously sent the euro lower.
Meanwhile, sterling advanced 0.2% to $1.2604, bolstered by UK Prime Minister Keir Starmer’s announcement that Europe is drafting a peace plan to present to Washington. Analysts suggest that the euro and pound could see further gains if diplomatic talks progress positively.
The Canadian dollar (CAD) and Mexican peso (MXN) each gained 0.2%, reacting to U.S. Commerce Secretary Howard Lutnick’s statement that upcoming tariffs—initially set at 25%—may be adjusted lower. This uncertainty has led to a rally in both currencies:
Investors are closely watching trade policy developments, as any reduction in tariffs could further support these currencies.
Bitcoin surged back toward $95,000, following an unexpected social media post from President Trump, who included Bitcoin in a proposed U.S. strategic cryptocurrency reserve. This marked a potential shift in U.S. crypto policy, boosting investor sentiment.
The Australian dollar (AUD) and New Zealand dollar (NZD)—often seen as risk-sensitive currencies—rebounded slightly after hitting one-month lows.
Similarly, the Japanese yen (JPY) edged up 0.1% to 150.46 per dollar, as investors sought safe-haven assets amid market volatility.
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