US dollar continues to weaken?

The USD is considered as the king when it comes to forex trading so if the US Dollar is weakening it can be indication that the other currencies may go upward.
 
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In my opinion, the USD is still full of challenges, especially concerning uncertain tariff policies, and the difference of views between Powell and Trump regarding interest rates. This difference is considered negative by market players and could weaken the USD.
 
In my opinion, the USD is still full of challenges, especially concerning uncertain tariff policies, and the difference of views between Powell and Trump regarding interest rates. This difference is considered negative by market players and could weaken the USD.
Do you think these disagreements could make the dollar weaker or maybe worst and affect things like prices or travel?
 
Do you think these disagreements could make the dollar weaker or maybe worst and affect things like prices or travel?
It could happen, the declining investor confidence in the US dollar can be seen from the DXY value, which tends to move below the EMA 20 since January 2025, reflecting the weakening performance of the US dollar. On the other hand, tariffs are predicted to cause inflation, and even the Fed still has no sign of lowering interest rates at the next meeting.
 
  • 👍
Reactions: vantageofficial
It could happen, the declining investor confidence in the US dollar can be seen from the DXY value, which tends to move below the EMA 20 since January 2025, reflecting the weakening performance of the US dollar. On the other hand, tariffs are predicted to cause inflation, and even the Fed still has no sign of lowering interest rates at the next meeting.
Thank you for the thoughtful insight. Indeed, the DXY trend and recent policy dynamics suggest that market sentiment around the USD remains cautious. The prolonged positioning below the EMA 20 since early 2025 may reflect underlying investor concerns, particularly in light of ongoing tariff policies and persistent inflationary pressures.

As you've noted, the Fed’s stance remains firm, with no immediate indication of rate cut. A decision likely influenced by the need to manage inflation expectations and maintain economic stability. Well, let's continue monitoring these developments closely, as they could have significant implications for global markets and trading strategies.
 
The US Dollar is becoming more valuable, reaching almost 97.00. This is happening because people want to invest in safer things like the US Dollar due to worries about global trade. The US is expected to announce new taxes on imports today, which is making investors nervous.
Looks like investors are running to the USD as a safe bet amid global trade tensions. If the US confirms those new import taxes, we could see more pressure on risk assets and a stronger dollar. But it's also a double-edged sword if it hits global growth.

What do you think? will the dollar rally continue if trade tensions escalate, or will we see a pullback once the news is priced in?