An increase of the indicator value may contribute to the rise in quotes of USD.
An increase of the indicator value may contribute to the rise in quotes of USD.
A decrease of the indicator value may contribute to the fall in quotes of USD.
An increase of the indicator value may contribute to the rise in quotes of USD and the fall in quotes of Silver, Gold.
A decrease of the indicator value may contribute to the rise in quotes of Silver, Gold and the fall in quotes of USD.
Gold emerged as another in-demand asset last year. Global central banks boosted their bullion reserves by over 1,000 tons, a record amount, doubling the annual level seen in the previous decade.
As reported by Bloomberg, the US Court of Appeals has allowed Donald Trump's global tariffs to remain in place for now, rejecting lawsuits from small businesses.
During the two-day US-China talks, the sides worked out a plan to resume supplies of sensitive goods. It is now awaiting approval by the countries' leaders, Donald Trump and Xi Jinping.
Bloomberg reports that market participants are scaling back their projections for Federal Reserve’s rate cuts this year. Investors are currently placing only one reduction before the end of the year in their forecasts, abandoning previous more aggressive expectations.
The May US jobs report showed a gain of 139,000 positions. However, significant downward revisions to previous months' data have tempered optimism. Samuel Tombs of Pantheon Macroeconomics suggests May's figures may also overstate the true health of the US labor market.
Morgan Stanley strategists anticipate a decline in two-year inflation expectations following May CPI data releases. Their projections suggest the reading may fall below economist forecasts, potentially weighing on near-term market prospects.
ECB Governing Council member Yannis Stournaras compared the unpredictable US trade policy with the balanced approach of the region’s officials. In an interview with Handelsblatt, he also noted the euro’s chances to strengthen because of the weakening dollar.
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.