Mexico’s trade balance for April showed a surplus of $0.083 billion, a decrease from the previous surplus of $1.035 billion. This implies a shift in Mexico’s trading environment, which could influence economic forecasting and assessments.

The EUR/USD pair recovered from its low, trading around 1.1330 due to proposed tariffs on European imports. Similarly, GBP/USD remained strong, reaching levels not seen since February 2022, influenced by an unexpected rise in UK retail sales data.

Gold prices continued to rise, trading near $3,350 per ounce, largely due to a weaker US Dollar amid talks of tariffs. Meanwhile, Apple stocks fell below $200 as tariff threats emerged, impacting US equity futures with more than a 1% drop.

XRP Market Activity

XRP saw a notable mid-week recovery with whale accumulation driving demand. This activity in XRP suggests a potential shift in market dynamics, signalling both higher demand and increased caution due to rising reserves.

Various brokers were highlighted for their offerings in trading EUR/USD as well as other financial instruments. This provides traders with options for cost-efficient and strategic trading in the current market climate in 2025.

The drop in Mexico’s trade surplus from over $1 billion to just $83 million reflects a narrowing gap between exports and imports. This weakening may stem from moderating external demand or higher import costs, both of which can feed into broader sentiment around Latin American exposure. While this should not trigger immediate alarm, it does ask us to watch macro trade conditions in the region more closely, especially when linked to commodity pricing and supply chain constraints that persist in global markets.

Impact of Proposed Tariffs

The EUR/USD’s resilience, bouncing near 1.1330 after proposed tariffs, reveals how policy headlines can rattle currency trajectories in a short span. It’s not just the suggestion of tariff shifts—it’s the ripple effect this has on business cost assumptions and risk sentiment. When the political narrative turns protectionist, as it did this week, we often see knee-jerk reactions into safe-haven flows or defensive FX positioning. We took this as an early testing ground for how quickly FX majors could price in policy risk, suggesting that reactive positioning—rather than passive—may offer better entries until clearer policy paths emerge.

Sterling’s strength—extending to February 2022 levels—was less about global macro fear and more about a rare domestic surprise: UK retail sales came in above expectations. This stirred optimism that domestic demand might provide support to the British economy just as other major economies show signs of slowing. When the pound rallies on internal data like this, it’s a reminder that not all G10 movements are driven by the US rate cycle alone. Traders would be wise to avoid over-reliance on Fed-linked catalysts across the board.

As for gold, its climb toward $3,350 underscores a broader hedging strategy that’s been building for much of the year. With the dollar under pressure thanks to tariff discussions underway, long positions in metals—particularly those historically seen as inflation shelters—are becoming more palatable. Price action this week wasn’t driven by new data, but by a combination of dollar weakness and risk distortion created by trade confrontation chatter. One shouldn’t expect linear movement here, yet sensitivity around central bank rhetoric and real yields remains high.

We also watched equity futures dip more than one percent as Apple shares dropped below $200, motioning that large-cap tech, often seen as a bellwether for investor appetite, is not insulated from trade risk either. With potential tariffs putting pressure on cost structures, tech portfolios may face reshuffling, especially if earnings get revised downward as a result. This is a case where correlation kicks in—one headline reshapes sector sentiment, then the broader index follows, often exaggerating short-term moves.

XRP’s sharp recovery midweek was particularly interesting, not just because of the size of the move, but due to visible whale activity, with larger accumulation amid rising reserves. In past cycles, this kind of on-chain data has lined up with either a challenge to resistance or a rapid cooling off depending on broader speculation trends. We’re keeping an eye here on transaction flow consistency and reserve pressure—it’s the sort of leading indicator that has helped time volatility in crypto spots before wider retail participation.

Last but not least, with brokers offering more precise spreads and competitive financing conditions across EUR/USD and others, opportunities are emerging for tactical engagements rather than long directional plays. Between shifting currency flows, commodity hesitations, and tariff manoeuvring, the next few weeks may underscore the value of intraday or medium-horizon setups favouring volatility exploitation rather than traditional momentum chasing.

Create your live VT Markets account and start trading now.