Tuesday, 22 July 2025
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US Dollar slips as trade tensions flare, Fed uncertainty weigh on sentiment
Monday, 21 July 2025 18:56 WIB | US DOLLAR |DOLLAR

The US Dollar (USD) kicks off the week on the back foot, slipping against major currencies in Monday trading. Investors are reacting to renewed trade tensions ahead of the August 1 deadline and a generally cautious market sentiment. Despite mostly solid US economic data lately, the Greenback is feeling the heat from ongoing uncertainty surrounding the US President Donald Trump administration's ramped-up tariff threats and increasing political pressure on the Federal Reserve (Fed) to cut interest rates.

The US Dollar Index (DXY), which measures the Greenback against six major currencies, is slipping further after a mild drop in Monday's Asian session after notching two consecutive weekly gains. Despite a turbulent week marked by fresh tariff threats and reports that President Trump considered firing Fed Chair Jerome Powell, a claim he later downplayed as "highly unlikely", the US Dollar Index still managed to hold modest gains.

Mixed messages from Fed officials on a possible July rate cut added to the uncertainty, but strong economic data, including solid Retail Sales and a healthy labor market, lent support to the Greenback. The DXY ended the week up 0.62%, showcasing its resilience in the face of political noise and policy tensions. However, the broader trend suggests underlying weakness in the US dollar.

Source: Fxstreet    

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