A decrease of the indicator value may contribute to the fall in quotes of USD.
A decrease of the indicator value may contribute to the fall in quotes of USD.
Despite inflation risks, US President Donald Trump is urging the Federal Reserve to ease monetary policy by cutting the interest rate to 1%, down from the current range of 4.25%–4.50%. This comes as consumer prices are rising due to new import tariffs enacted on key trading partners.
Despite concerns about a new round of US inflation caused by President Donald Trump's tariffs, price growth remains relatively stable. Consumer prices rose 2.4% in May, below economists’ forecasts.
On Monday, the dollar fell to a nearly four-year low against the euro amid concerns over growing US budget deficit and uncertainty surrounding trade deals with other countries, Reuters reports.
Goldman Sachs pulled forward its forecast for the Federal Reserve’s next moves, now predicting the central bank will start cutting interest rates again in September, three months earlier than its previous estimate.
Investors will be closely watching a series of key US employment data releases this week, including reports on job openings and non-farm payrolls. Market participants are about to use them to assess the nation's economic resilience.
As reported by Bloomberg, European stocks outperformed their US counterparts in dollar terms during the first half of 2025. This signals a recovery in the region’s equity markets after more than a decade of stagnation.
US stocks have surged back from their April lows, with the S&P 500 closing at a record high on Friday. However, as Greg Daco of EY warned, the tariffs imposed by Donald Trump could accelerate inflation in the US, leading to income erosion in the second quarter of 2025.
According to Morgan Stanley economists, many investors will be disappointed by the outcomes of the two upcoming meetings of the US Fed. The regulator's cautious approach to borrowing costs runs counter to recent statements by President Donald Trump.
The Bank for International Settlements (BIS) has warned about a potential intensification of inflation in the United States. According to the organization's experts, these changes are being driven by the negative impact of Donald Trump's trade policies on the global economy.
According to the University of Michigan, the US Consumer Sentiment Index rose to 60.7 in June from 52.2 a month earlier. The 8.5-point increase was the largest since early 2024 and reached a four-month high.
The dollar is the monetary unit of the United States (US). It is also used as the official currency by some other countries (Ecuador, Zimbabwe, El Salvador). The dollar holds a leading position in the world economy.
At the moment, the dollar dominates the system of international settlements with almost 50% share (the euro ranks second with less than 25%). Meanwhile, the dollar's dominance is even more pronounced in the financial sector, on the foreign exchange market, and in the government reserves.
The US currency (USD) quotes, as well as those of its foreign counterparts, depend primarily on the economic and political situation in the issuing country. The US authorities, such as the Federal Reserve System (the Fed) and the Department of the Treasury, influence the dollar exchange rate by changing their monetary, fiscal, budget, and tax policies.
Moreover, the value of the dollar may be significantly affected by the latest news and the international situation. Global economic problems and rising geopolitical tensions have historically been favorable for the US currency, as investors consider it one of the major safe-haven assets, along with gold. In contrast, during periods of strong economic growth and a relatively calm global environment, the demand for the dollar tend to reduce.