An increase of the indicator value may contribute to the rise in quotes of USD and the fall in quotes of Silver, Gold.
An increase of the indicator value may contribute to the rise in quotes of USD and the fall in quotes of Silver, Gold.
Morgan Stanley upgraded its rating on US stocks to “overweight”, citing a combination of solid earnings with supportive monetary policy and a weakening dollar.
On Wednesday, May 21, the US dollar fell against major currencies as President Donald Trump failed to convince Republicans to support his tax bill.
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.
Citigroup Inc. strategists, led by Osamu Takashima, predict a possible weakening of the US dollar following the upcoming G7 summit. During the meeting, world leaders plan to discuss currency policy as part of trade negotiations with the United States.
Federal Reserve (Fed) officials on Tuesday cited potential risks associated with price increases stemming from US import tariffs. The central bank indicated it will take a wait-and-see approach before adjusting interest rates.
Strategists at Morgan Stanley have raised their forecasts for US stocks and Treasuries amid expectations of interest rate cuts by the US Federal Reserve (Fed).
In recent months, trader sentiment towards the dollar has deteriorated. The cost of buying versus selling greenback options has already plunged to -27 basis points, its lowest level since 2011, Bloomberg reports.
Alberto Musalem, President of the Federal Reserve Bank of St. Louis, warns tariffs may pressure the US economy and labor market. As the official stated, even after the easing of tensions on May 12, tariffs can significantly affect the near-term economic outlook.
On Tuesday, the dollar is holding in a narrow range. Pressure on the currency is created by the discussion in the US regarding a new bill that could increase the country's budget deficit.
Experts interviewed by Reuters expect further weakening of the US dollar due to Donald Trump's unpredictable tariff policies and their uncertain impact on the country's economy. Investors are now questioning the "exceptionalism" of the United States.
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.