Dollar loses ground amid weak US economic data

The dollar is heading for a weekly decline, pressured by negative signals from the American economy, Reuters reports. The situation is further exacerbated by a lack of progress in US trade talks with partners, despite the approaching deadline.

The weakening of the American currency accelerated following a series of disappointing economic indicators. Market participants are now closely focused on the upcoming US employment report, which could significantly impact exchange rate movements. According to Ray Attrill, head of FX research at National Australia Bank, the current softness in economic data has revived negative expectations for the dollar.

According to Reuters, investors concerned about uncertainty in US trade policy are locking in profits on dollar-denominated assets. Tensions are escalating amid a public dispute between President Trump and businessman Elon Musk, diverting attention from trade negotiations.

Meanwhile, the euro is gaining ground, hitting a one-and-a-half-month high following remarks by the head of the European Central Bank. The British pound is also showing positive momentum, reaching its highest level in three years.