In May, the difference between US imports and exports of goods increased by 11.1%, reaching $96.6 billion. This was the result of the strongest export decline since the start of the pandemic, while imports remained virtually unchanged.

27 June

US trade deficit unexpectedly widened in May due to sharp decline in exports

Rise in US jobless claims points to weaker labor market

The number of Americans who continue to receive unemployment benefits surged to its highest since November 2021. Bloomberg notes that increasingly more people struggle to find a new job quickly.

27 June

Rise in US jobless claims points to weaker labor market

Declining consumer spending dampened US GDP growth in first quarter

US consumer spending in the first quarter grew at its slowest pace since the start of the pandemic. According to the Bureau of Economic Analysis, the figure rose just 0.5%, well below the initial estimate of 1.2%. As a result, GDP declined at a downwardly revised 0.5% annualized rate.

27 June

Declining consumer spending dampened US GDP growth in first quarter

Markets expect US Fed to adopt more dovish stance if Powell leaves office — Reuters

Disagreements between US President and Federal Reserve Chairman over future monetary policy continue to intensify. Powell's term as Fed Chair is coming to an end next year. Investors hope that a more dovish official will replace him, Reuters reports.

27 June

Markets expect US Fed to adopt more dovish stance if Powell leaves office — Reuters

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.