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.
Christopher Wood from Jefferies Financial Group Inc. believes that the US stock market is far from its peak and that investors should brace themselves for further declines in stocks, Treasuries, and the dollar.
The US Federal Reserve (Fed) has released its latest Beige Book, revealing a slowdown in economic activity across several regions of the country. Reuters reports that new tariffs enacted by President Donald Trump have led to higher consumer prices and a more pessimistic outlook for businesses.
The April reading of the S&P Global flash composite index, reflecting manufacturing and services sector output in the US, fell 2.3 points to 51.2, according to data released on Wednesday. This marked the lowest pace of business activity growth since 2023.
A unit of USB Group AG for the second time over the last two months reduced the dollar forecast, referring to the dependence of the currency on the dynamic of Sino-American trade relationship.
The dollar took a breather on Thursday after a surge driven by Donald Trump backing off his plans to remove US Federal Reserve Chair Jerome Powell and a possible reduction in tariffs on China.
An increase of the indicator value may contribute to the rise in quotes of USD.
Investors leave the US markets and massively reorient their portfolios to European funds, equities, and government bonds amid the announcement of US tariffs and subsequent turmoil in global markets.
The International Monetary Fund (IMF) has warned of serious risks to the global economy caused by the escalation of trade tensions. According to the Fund's analysts, it is the US that will suffer the greatest losses.
Valentin Marinov, one of the leading experts at Credit Agricole, considers the dollar's fall to be temporary. He estimates that by the mid-year, the American currency will regain its former strength.
Luis de Guindos, Vice‑President of the European Central Bank (ECB), believes the euro could one day rival the US dollar as a reserve currency. In his opinion, this will be possible if EU countries unite in favor of integration.
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.