In the forex market, EUR/USD is facing downward pressure as traders brace for new U.S. tariffs set to take effect tomorrow. These tariffs are expected to strengthen the U.S. dollar while further weakening the euro. Meanwhile, the European Central Bank is widely expected to cut interest rates by 25 basis points, from 2.90% to 2.65%, marking its sixth rate cut since last year. The euro has struggled against the dollar since October 2023, falling below 1.02 in early 2025 before briefly recovering above 1.05. However, last week saw another bearish reversal as buyers failed to maintain momentum but yesterday buyers returned, sending the price to 1.05 again.
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Forex Signals Brief March 4: Tariffs to Be Signed – Another Crash in Crypto and Stock Market Today?
Skerdian Meta•Tuesday, March 4, 2025•3 min read
Today tariffs on Mexico and Canada will be signed, together with an increase on China tariffs, which leaves the crypto and stock market and cryptocurrency market exposed to further declines.
Following a strong rebound on Friday, market sentiment was initially positive but quickly turned bearish as concerns over economic growth and tariffs resurfaced. U.S. economic data highlighted these worries, and Trump’s announcement of a 20% tariff increase on China reinforced investor fears.
Late in the day, heavy selling pressure hit risk assets, the Canadian dollar (CAD), and the Mexican peso (MXN) after Trump stated there was no room left for negotiation. However, markets saw a slight recovery when it was revealed that tariffs on Mexico and Canada were not yet signed.
The U.S. stock market suffered broad losses, with the tech-heavy Nasdaq taking the biggest hit due to a sharp sell-off in semiconductor and e-commerce stocks. Nvidia dropped 8.69% as investors reassessed its valuation following a rapid surge, while Intel fell 7.5% amid ongoing struggles against dominant rivals like TSMC.
Amazon and Meta also saw steep declines, adding to the overall weakness in the tech sector. Meanwhile, oil prices plunged $2.50 after OPEC+ announced plans to gradually restore 2.2 million barrels per day in production over 2025 and 2026, further pressuring the Canadian dollar.
In Europe, concerns grew over expansionary fiscal policies linked to defense spending, while ongoing geopolitical tensions weighed on market sentiment. Cryptocurrencies also saw a downturn after Trump’s recent comments about a Crypto Strategic Reserve over the weekend, which had initially sparked optimism. However, today’s investment announcement focused on TSMC’s $100 billion U.S. expansion rather than digital assets.
GOLD continued its bullish trend from late 2023, reaching new all-time highs above $2,956 earlier this week before facing a sharp pullback. Despite the decline, gold remains in demand under both risk-on and risk-off conditions. A key support level near $2,832 has emerged, and technical indicators suggest a potential rebound if buying interest strengthens.
Today’s Market Expectations
The economic calendar is light today, apart from some mild data from Australia. However, the Tariffs will take center stage today, and give the price action of recent months, it suggests that stock markets and cryptocurrencies might see another retreat. Or, perhaps the selloff was all complete yesterday and today we might see a buy-the-fact scenario. However, it will remain to be seen how markets react in the US session.
Yesterday the volatility was immense in the crypto and stock markets, while certain forex pairs weren’t left behind and crude Oil. As a result, we opened many trading signals and ended the day will 12 closed trades across all markets. We had 9 winning forex signals and 3 losing ones, giving us a 75%-25% win/loss ratio.
Gold Returns to $2,900 After the Dive
Gold continued its bullish trend from late 2023, reaching new all-time highs above $2,956 in February before facing a sharp pullback. Despite the decline, gold remains in demand under both risk-on and risk-off conditions. A key support level near $2,832 has emerged, and technical indicators indicated a potential rebound which came yesterday, as buying interest strengthens.
XAU/USD – H4 Chart
EUR/USD Bounces Off the 50 Daily SMA
EUR/USD – Daily Chart
Cryptocurrency Update
Bitcoin Gives Back Sunday’s Gains
BITCOIN remains under selling pressure after a volatile February. The BTC/USD pair broke below its 100-day SMA support at $90,000 and briefly rebounded from the 200-day SMA at $86,000. However, renewed bearish pressure has brought it back to this critical level. If it holds, a rebound is possible, but a breakdown could push Bitcoin closer to $80,000.
BTC/USD – Daily chart
Ripple XRP Price heads Back Toward $2 After Failing at $3
XRP saw a strong start to the month, rallying nearly 50% from Friday’s drop below $2, while Cardano (ADA) led the crypto market surge with a 200% gain. The rally was fueled by Trump’s announcement of the Crypto Strategic Reserve, which boosted optimism about digital asset integration. However, XRP failed to break the $3 resistance level, leading to a sharp reversal below $2.50 and testing the $2.30 mark.
XRP/USD – Daily Chart
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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