21 May 2025 | Other | Dollar

Global trade uncertainty continues to weigh on dollar — Reuters

Global trade uncertainty continues to weigh on dollar — Reuters

According to Reuters, May 21 saw another day of dollar sell-offs, though not particularly intense. US Treasury bond yields remain elevated, causing concern among investors. Markets are watching for changes in US trade deals and assessing the country's economic health.

The yen and the Swiss franc were once again the main beneficiaries of global trade uncertainty. Meanwhile, the euro hit its highest levels in two weeks, despite a rise in US government bond yields. Typically, rising yields support the dollar, especially against the yen. However, Reuters noted that this correlation has been weakening recently. President Trump's erratic policies have caused market turmoil and undermined confidence in US assets.

European traders today focused on the annual earnings report of retailer Marks & Spencer and UK inflation data, the news agency said. Consumer prices in the UK rose by 3.5% in April. On May 8, the Bank of England cut rates by 25 basis points. Traders now expect further easing at the next meeting in June.

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