Canadian dollar and Mexican peso strengthened following U.S. Commerce Secretary Howard Lutnick’s comments on potential tariff reductions. Bitcoin surged to $95,000 after President Trump announced its inclusion in a new strategic reserve. The euro rose 0.4%, reflecting a positive European consensus on Ukraine, while the Australian and New Zealand dollars also recovered. The dollar index dipped slightly, and analysts expect continued fluctuations amid escalating trade tensions. Bitcoin saw significant gains, buoyed by recent announcements.
Market Movements: Canadian Dollar and Mexican Peso Surge
The Canadian dollar and the Mexican peso experienced an uptick following comments from U.S. Secretary of Commerce Howard Lutnick, who hinted that the upcoming tariffs might not reach the previously anticipated 25%. In a related development, Bitcoin surged back to the $95,000 mark after U.S. President Donald Trump announced via social media that the cryptocurrency would be part of a new strategic reserve. This notable price movement reflects the market’s reaction to geopolitical events and policy changes.
Euro and Other Currencies React to Global Events
The euro appreciated by 0.4%, reaching $1.0415 in early Asian trading, recovering from a low of $1.0360 recorded on Friday. This drop coincided with a tense exchange between Trump and Ukrainian President Volodymyr Zelenskiy during their meeting in the Oval Office. However, Zelenskiy received a warm reception in Britain shortly thereafter, where British Prime Minister Keir Starmer announced that European leaders were collaborating on a peace plan to present to Washington. The British pound also strengthened by 0.2%, settling at $1.2602.
According to Tapas Strickland, head of market economics at the National Australia Bank, the growing European consensus for a resolution regarding Ukraine is positively influencing the euro. Meanwhile, the Australian and New Zealand dollars, often seen as sensitive to global risk, are recovering from their lows, with the Australian dollar rising 0.2% to $0.6220 and the New Zealand kiwi increasing by 0.1% to $0.5606. In contrast, the yen, considered a safe-haven currency, weakened slightly by 0.1% to 150.52 per dollar.
As Lutnick discussed tariff negotiations on Fox News’ “Sunday Morning Futures,” he indicated that discussions with Canada and Mexico were ongoing and fluid, signaling a potential shift in the administration’s stance on tariffs. Additionally, he noted that Trump is expected to introduce a further 10% tariff on China this Tuesday. On Friday, U.S. Treasury Secretary Scott Bessent encouraged Canada to align its tariffs on Chinese goods with those of Mexico, potentially as part of negotiations aimed at reducing their own tariffs with the U.S.
The dollar index, which gauges the currency’s performance against a basket of major currencies including the euro and British pound, fell by 0.1% to 107.21. In offshore trading, the Chinese yuan strengthened by 0.1% to 7.2873 per dollar. Analysts from the Commonwealth Bank of Australia predict that the dollar may continue to rise this week, emphasizing that the trade conflict is escalating and that a peak in tariffs has yet to be reached.
Bitcoin’s price was recorded at $92,905, marking an impressive nearly 11% increase since Friday, with an earlier high of $94,852.56—the highest level seen since February 24. After dipping to $78,273.03 on Friday, Bitcoin rebounded significantly following Trump’s announcement about the cryptocurrency’s inclusion in the strategic reserve, alongside ether, XRP, solana, and cardano—all of which saw price increases after the news broke.