The S&P Global Manufacturing PMI for Greece decreased to 52.6 in February, down from 52.8 recorded previously. This change indicates a slight contraction in the manufacturing sector’s activity.
Additionally, EUR/USD has risen above 1.0500 amidst concerns about the US administration’s trade policies affecting the dollar. GBP/USD has also climbed to over 1.2700, reflecting its strongest position since December due to selling pressure on the US currency.
Gold Prices And Market Reactions
Gold prices increased to $2,920 as market reactions to trade tensions intensify. Meanwhile, major cryptocurrencies like Bitcoin and Ethereum have seen declines after speculative trading following recent announcements.
US tariffs of 25% on Canada and Mexico, and 10% on China, have begun, alongside the suspension of military aid to Ukraine.
The dip in Greece’s manufacturing PMI to 52.6 from 52.8 suggests that the country’s manufacturing output grew at a slower pace rather than contracting outright. While still above the 50-mark that separates expansion from contraction, this mild decline could indicate diminishing momentum. Traders monitoring economic health might weigh how this plays into broader European trends, particularly as manufacturing sectors across the continent grapple with demand fluctuations.
In currency markets, the US dollar has weakened, pushing EUR/USD above 1.0500 and GBP/USD above 1.2700. The pressure appears to stem from concerns about Washington’s recent trade policies, which have sparked investor caution. With these policies setting fresh constraints on global trade, traders may assess further shifts in risk sentiment. If capital outflows from the dollar persist, the market could see heightened volatility across major pairs.
Gold’s push to $2,920 follows increased nervousness over trade policy impacts. Historically, uncertain trade conditions have driven investors towards assets viewed as safer, and we see that trend playing out here. This movement suggests expectations of further caution in the financial system. Market participants should evaluate whether momentum carries gold higher or if profit-taking interrupts the rally.
At the same time, cryptocurrencies have moved in the opposite direction, with Bitcoin and Ethereum seeing declines. This fall follows speculative buying in response to recent announcements, and the pullback could indicate traders reassessing positions after an initial wave of enthusiasm. Those engaging with digital assets may need to keep a close watch on sentiment shifts, as abrupt reversals have been common within the sector.
Impacts Of Trade Tariffs
The newly imposed tariffs—25% on Canada and Mexico, along with a 10% rate on China—have now come into effect alongside a halt in military aid to Ukraine. Trade restrictions of this scale tend to have ripple effects, and we may soon see adjustments in supply chains and cost pressures reflected across different asset classes. These developments merit close attention, particularly for those assessing risk exposure in equities, commodities, and currency markets.
