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US Dollar trims losses after early slide, stagflation worries remain
Tuesday, 15 April 2025 01:05 WIB | US DOLLAR |DOLLAR

The US Dollar Index (DXY) recovered slightly in Monday's North American session after dropping to its lowest point since 2022. Trading around the 99.60 area, the index attempted to stabilize as investors reacted to signs of rising stagflation risks. The rebound came despite fresh US Dollar (USD) selling pressure that had driven EUR/USD and GBP/USD toward multi-month highs earlier in the day. While the market saw some relief after expanded exemptions on US reciprocal tariffs, concerns over inflation, consumer sentiment, and global trade frictions continued to dominate the landscape. Technically, downside pressure remains intact.
On Friday, Consumer confidence fell sharply, with the University of Michigan's index plunging to 50.8 in April, missing forecasts and marking the lowest since June 2022.
Forward inflation expectations for the next 12 months rose to 6.7%, the highest in years, complicating the Federal Reserve's policy outlook.
China imposed new retaliatory tariffs of 125% on US imports after last week's US escalation; business confidence is expected to suffer.
The Pound and Euro initially surged, but both EUR/USD and GBP/USD gave back gains as the Greenback showed signs of stabilization into the session close.
US Commerce officials confirmed new exemptions on electronic imports from reciprocal tariffs, temporarily calming recession fears but increasing policy uncertainty.

Source: Fxstreet

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