5 May | Dollar

Dollar continues to decline amid abrupt shifts in US tariff policy

Dollar continues to decline amid abrupt shifts in US tariff policy

The dollar extended its decline on Monday. Sudden shifts in US trade policy, coupled with pressure on the Federal Reserve, undermined investor confidence in the currency, Reuters reports.

Meanwhile, China's Commerce Ministry states that Beijing is reviewing Washington's proposal to negotiate 145% tariffs on Chinese imports. However, the two sides remain far from reaching a consensus.

US President Donald Trump states he will not remove Federal Reserve Chairman Jerome Powell. However, the president called on the Fed to ease monetary policy conditions, Reuters notes.

Meanwhile, the US regulator's meeting is scheduled for Wednesday. According to experts polled by the agency, the interest rate is expected to remain unchanged. The probability of a June rate cut now stands at just 37%, down from 64% a month ago.

The next hurdle for the dollar will be the ISM Services PMI release. Weak data could reignite market concerns about a US economic slowdown, Reuters notes.

Anton Volkov MarketCheese
Period: 27.05.2025 Expectation: 50000 pips
Buying BTCUSD amid growing institutional adoption with target 110,000
Today at 12:21 PM 34
Elizabeth_Kuzmicheva
Elizabeth_Kuzmicheva

Listed among the best MarketCheese authors
1st in the segments "Metals" and "Oil and gas"
Period: 30.05.2025 Expectation: 5000 pips
Tesla shares correct after explosive gains
Today at 08:25 AM 24
Period: 22.05.2025 Expectation: 600 pips
AUDUSD will grow to 0.64900 amid US rating downgrade
Today at 08:20 AM 32
Gold buy
Period: 23.05.2025 Expectation: 6000 pips
US credit downgrade would send gold to 3290
Yesterday at 11:09 AM 133
Period: 26.05.2025 Expectation: 3000 pips
Fundamental factors constrain SPX's growth potential
Yesterday at 08:27 AM 53
Elizabeth_Kuzmicheva
Elizabeth_Kuzmicheva

Listed among the best MarketCheese authors
1st in the segments "Metals" and "Oil and gas"
Period: 23.05.2025 Expectation: 700 pips
Silver will drop to 31.7 amid de-escalation of US-China relations
Yesterday at 07:55 AM 31
Go to forecasts