The US dollar index declined to around 103.7, near a four-month low. Concerns about Trump’s trade policies and potential government instability fueled worries of a possible US recession. Investors are awaiting crucial inflation data releases (CPI and PPI) ahead of the upcoming FOMC meeting, where the Federal Reserve will share updated economic projections. The dollar has weakened against safe-haven currencies like the Japanese yen and Swiss franc, while the euro and British pound have strengthened due to expectations of increased European defense spending.
- The dollar index is hovering near four-month lows at around 103.7.
- Concerns about Trump’s trade policies and government shake-ups raise recession fears.
- Trump acknowledged the current economic phase as a “period of transition”.
- Investors are awaiting CPI and PPI data for inflation insights.
- The Federal Reserve will unveil updated economic projections at the next FOMC meeting.
- The dollar weakened against the Japanese yen and Swiss franc.
- The euro and British pound gained on expectations of increased defense spending in Europe.
The scraped text suggests a bearish outlook for the US dollar. Concerns about domestic economic policy and potential recession are driving investors towards safe-haven assets and boosting the value of currencies tied to increased European defense spending. The upcoming inflation data and the Fed’s economic projections will be critical in determining the dollar’s near-term trajectory.