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 US administration's import tariffs on key trading partners, which took effect in mid-May, will help reduce the country's budget deficit by approximately $2.8 trillion, according to the American Congressional Budget Office.
In its Beige Book, the Federal Reserve (Fed) pointed to a modest cooling in US economic activity, attributing the slowdown to the impact of imposed tariffs and growing macroeconomic uncertainty.
The volume of US factory orders suddenly dropped by 3.7% in May, sparking investor concerns about the industrial sector’s health. Investing experts expected only a 3.1% decline. However, even that drop was enough to make the markets nervous, since just a month ago, orders were up 3.4%.
Despite a recent pause in its sharp decline, the US dollar is expected to weaken further, according to positioning in the currency options market. Investor sentiment has deteriorated this year due to President Donald Trump's aggressive tariff policies.
The US Bureau of Labor Statistics (BLS) has announced plans to correct "minor errors" identified in the April employment data. The adjustments will be released on Friday alongside the May jobs report.
The US Bureau of Labor Statistics reported an unexpected rise in job openings to 7.39 million in April, exceeding forecasts of 7.10 million. The increase was driven by gains in the healthcare, professional, and business services sectors.
According to the latest estimates from the Organization for Economic Cooperation and Development (OECD), global GDP growth is expected to slow from 3.3% last year to 2.9% in both 2025 and 2026. In March, the organization predicted increases of 3.1% this year and 3% next year.
US Treasuries weakened in early June, with 30-year bond yields surging to 5%, driven by renewed concerns over President Donald Trump’s tariff policies during a critical week for economic data, Bloomberg reported.
According to Kitco News, the gold market has significant upside potential driven by economic uncertainty and geopolitical instability. However, Michele Schneider, chief market strategist at MarketGauge, highlights promising opportunities in silver.
Debate is heating up within the US Federal Reserve (Fed) over the future direction of monetary policy. A key factor in the discussions is President Donald Trump’s tariff policy and its impact on inflation, according to Yahoo Finance.
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.