Eurozone CFTC EUR net positions fell from €84.8K to €74.5K, showing a drop in net positions held. This change reflects recent market trends. The EUR/USD pair recovered to around 1.1330 after finding support near 1.1300. This increase happened as President Trump suggested a “straight 50% tariff” on European imports, affecting trading conditions. GBP/USD rose above 1.3500, boosted by a weaker US Dollar and strong April retail sales data from the UK. At the same time, gold prices remained strong, trading near $3,350 per ounce, supported by the declining dollar. Apple’s stock sank below $200 after Trump warned of more tariffs if the company doesn’t produce iPhones in the US. Following these threats, US equity futures dropped more than 1%. Ripple’s price increased, as large holders bought more XRP, even though rising exchange reserves signal caution. Finding reliable brokers for trading EUR/USD can help, offering good spreads and solid platforms for all traders. Eurozone net positions for the euro decreased last week, dropping from nearly 85,000 to about 74,500 contracts, according to the latest CFTC data. This indicates less bullish interest in the euro, suggesting traders are scaling back on long positions. The decline signals a move away from previous confidence, with traders showing more caution as they anticipate less supportive monetary policies or geopolitical tensions. The euro bounced off the 1.1300 level, moving up towards 1.1330. This rise aligned with Trump’s comments about a 50% tariff on European goods, creating more market pressure. Political statements like this can influence trading significantly, as they may lead to increased demand for safe-haven assets or shift expectations for future central bank policies. Sterling climbed above 1.3500, driven by strong UK retail sales and a generally weaker dollar. This rise is largely attributed to the dollar’s softness, indicating that the GBP/USD pair reacts more to dollar movements than to domestic data alone. External factors, especially those tied to Federal Reserve rate expectations and trade policy, are major influences here. Gold remains well above $3,300 per ounce, currently around $3,350, benefiting from the dollar’s continued weakness. Historically, when the dollar weakens, gold prices tend to rise, especially with low US yields. This relationship is now more mechanical than influenced by sentiment, as the inverse correlation between gold and the dollar deepens. Rising prices should not be mistaken for a flight to safety; they instead reflect dollar positioning trends. In other news, Apple’s shares dropped below $200 due to concerns over tariffs. Warnings about penalizing foreign production affected sentiment, causing not just a decline in Apple’s stock but also a fall in broader futures markets by more than 1%. Such corrections can gain momentum quickly unless countered by policy reassurances or comments from central banks. Past reactions to tariff news often show a short-term decline followed by renewed focus on liquidity and fiscal measures. Ripple (XRP) saw some gains as large holders increased their investments. However, rising reserves on exchanges indicate that while some are buying, others may be looking to sell. This creates two groups: early investors and those waiting for liquidity to exit. This divergence can lead to sideways movement or short-term volatility spikes. It’s important to look at broader market flows and network activity rather than focus solely on single-holding statistics at this point. Overall, movements in major currency pairs and assets warrant tighter risk management. Market participants are reducing exposure and avoiding long-term bets in light of new policy threats. Directional impulses appear short-term and largely influenced by headlines. Not all price movements reflect a fundamental shift. Traders should prioritize liquidity and market maker behavior instead of just following news cycles. Better execution and cost efficiency, rather than bold bets, may be beneficial in the coming weeks.

here to set up a live account on VT Markets now