Trade Tensions Add Pressure to the Dollar

Recent US trade policy decisions are increasing uncertainty. The US plans to collect tariffs from 86 countries, a move that’s raising concerns among investors.

While some governments are asking for exceptions, the US appears to be pushing forward with the plan. This has made traders more cautious, leading to reduced demand for the US dollar.

Yields Are Rising—but So Are Concerns

The rise in Treasury yields reflects growing investor demand for protection against uncertainty. But even as yields climb, the dollar is struggling. The reason?

Traders are nervous about how trade tensions and weaker global growth might affect the US economy.

Inflation Data and Fed Minutes Could Shift the Outlook

Markets are waiting for two key updates this week: US inflation numbers and the Federal Reserve’s meeting minutes. These will help clarify if and when the Fed might cut interest rates.

Right now, there’s a 60% chance of a rate cut in May, but most traders expect the first cut to happen in July. Overall, more than 100 basis points in cuts are priced in by year-end.