Dollar News (USD)

The dollar continues to weaken as investors grow increasingly concerned about potential threats to the Federal Reserve's independence. Expectations of monetary policy easing by the Fed are adding further pressure to the greenback, according to Reuters.

This week, Federal Reserve officials said they will closely monitor the US Consumer Price Index (CPI) over the next few months. They argue that this is key to evaluating the long-term inflationary effects of Donald Trump’s trade tariffs.

On Friday, the dollar is hovering near its lowest level in three and a half years against the euro and sterling amid traders' reassessment of the US Central Bank's monetary policy prospects.

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.

According to forecasts by experts surveyed by Investopedia, the US core Personal Consumption Expenditures (PCE) price index, excluding food and energy, is expected to have risen by 0.1% month-over-month in May. The annual rate is anticipated at 2.6%, slightly above April’s 2.5%.

According to JPMorgan's forecasts, US GDP growth will be 1.3% in 2025. This is lower than the bank's estimates, published at the start of the year. As it was noted by the bank's experts, the economy of the United States will come under pressure from Donald Trump's import tariffs.

The greenback dropped as expectations grew of sooner monetary easing in the US. The Bloomberg dollar index fell 0.2% to a record low since April 2022.

According to White House chief economist Stephen Miran, President Donald Trump's policies will reduce the US budget deficit by up $11 trillion over the next ten years.

Traders are boosting bets on a decline in the yield on 10-year US Treasury bonds, expecting them to drop to four percent. Total bets have exceeded $38 million of worth over the past two days.