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.
An increase of the indicator value may contribute to the rise in quotes of USD.
Experts at JPMorgan Chase, analyzing market indicators, have observed a sharp rise in the probability of a recession in the United States, now nearing 80%.
According to Bloomberg, US small-business owners' optimism fell sharply in March, marking the biggest decline since mid-2022. The decline reflects concerns about economic conditions and sales volumes.
In the current global environment, PineBridge Investments expert Omar Slim prefers to hold cash instead of buying US Treasury bonds due to Donald Trump's tough tariff policies.
The dollar lost ground against the yen on Wednesday. The potential introduction of 104% import tariffs on China by the US administration has unsettled global stock markets. The US President has shown no intention of abandoning plans to raise duties by an additional 50% on Chinese imports.
Jamie Dimon, CEO of JPMorgan Chase, analyzed the economic situation and expressed concern over the US President's new tariff policy. He estimated that the imposed duties will inevitably lead to an increase in both imported and local goods prices, putting more pressure on a slowing US economy.
Adriana Kugler, a member of the Federal Reserve's Board of Governors, stated that President Trump's tariffs currently pose a greater risk to US inflation than to economic growth. A rush by US consumers to purchase goods before tariffs take effect could temporarily boost
Such safe-havens as the Swiss franc and the yen are holding near six-month highs on Tuesday. Meanwhile, the dollar is facing broad losses due to rising market concern over a recession in the US caused by sweeping import tariffs.
Federal Reserve Bank of Chicago (Fed) President Austan Goolsbee is expressing concern about economic tensions arising from a possible escalation of import duties. Global markets experienced a downturn after US President Donald Trump announced a series of sweeping tariffs last week.
An increase of the indicator value may contribute to the rise in quotes of USD.
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.