Dollar News (USD)

News that US tariffs against the EU have been postponed did not provide sufficient support for the dollar. According to ING expert Francesco Pesole, this is due to traders' continued concern over Trump's uncertain trade and tax policies.

According to FXStreet's research, the US Dollar Index is in a bearish trend. The greenback is currently trading below the 100-point psychological level and is potentially heading towards a 2025 low of 97.9 points. Still, there are signs that this decline may slow down.

On Tuesday, the S&P 500 surged by over 1%, extending Monday's gains after US President Donald Trump delayed the imposition of import tariffs on EU goods, Bloomberg reports.

The Japanese yen has taken a hit after its surge during the Asian trading session, which happened at the same time as a big hike in the dollar. The decision by US President Donald Trump to postpone 50% import tariffs on the EU has given investors a much-needed boost.

Donald Trump's tax reforms in the United States continue to provoke strong reactions from experts. While some expect a reduction in government spending, others fear a sharp rise in the budget deficit. House Speaker Mike Johnson belongs to the first group and supports the initiative.

Federal Reserve Bank of Minneapolis President Neel Kashkari stated that uncertainty surrounding US trade and immigration policies is hindering the central bank's ability to decide on interest rate cuts.

Donald Trump's plans to impose 50% duties on European goods remain a serious threat to the global economy. Besides, surging US debt undermines investor confidence in the Treasury bond market. Weak demand for bonds and, as a result, a sharp rise in yields may boost interest in gold.

The dollar struggled to regain ground on Tuesday as market worries about how the sweeping US tax bill might affect the national economy persist, continuing to drag down American equities, Reuters reports.

On Monday, the euro hit a one-month high against the dollar. This occurred after US President Donald Trump reversed his decision to impose 50% tariffs on EU imports. The American leader gave time to the bloc until July 9 to reach a trade agreement.

The US credit rating downgrade by Moody's last week continues to weigh on markets, increasing investor fears about the country's soaring national debt. Yardeni Research experts consider a negative scenario quite possible, but do not view it as catastrophic.