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.
The dollar barely recovered from steep losses on Tuesday as investors remained uncertain about a de-escalation in trade tensions between China and the US, according to Reuters.
Megan Greene from the Bank of England noted the impact of the dollar's exchange rate on British monetary policy. In her opinion, a weaker dollar has a deflationary effect on the UK economy, helping to accelerate rate cuts.
US consumer sentiment fell significantly in April, with inflation expectations hitting new highs on concerns about the impact of tariffs on the country's economy.
According to the Financial Times, Trump’s trade policies are hurting the US economy due to the confrontation with China.
According to the Bloomberg survey, the US economy is expected to grow by 1.4% in 2025 and 1.5% in 2026. A similar survey conducted in March suggested an increase of 2% and 1.9%. At the same time, the probability of recession was increased to 45% from 30% stated in March.
Politico says that President Donald Trump’s administration is overlooking economic polling and insisting import tariffs and trade negotiations will benefit Americans and positively impact US GDP.
This week will be full of US economic data. The dollar is being supported by this fact. Market participants hope to get a more accurate assessment of Trump's trade policy impact on the US economy. According to Reuters, a particular interest will be paid to the employment rate.
A decrease of the indicator value may contribute to the fall in quotes of USD.
The US dollar, already weakened by tariff uncertainty and recession fears, is likely to continue falling, according to Goldman Sachs chief economist Jan Hatzius.
Donald Trump’s inconsistent tariff policies have led small European companies to question the feasibility of expanding into American markets.
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.