Global Forex Monitor - May 2025
In April, the DXY dollar index recorded a significant decline to a low of 98.28 following the announcement of reciprocal tariffs on April 2nd ("Liberation Day"), measures that penalized global trade and the U.S. economy. The dollar was also affected by Trump's criticism of J. Powell, threatening to remove him if he did not lower interest rates quickly. This led to an unwinding of "long" dollar positions held by speculative accounts, accumulated before Trump's election, thus accentuating its correction. After this fall, the dollar showed signs of stabilization following the announcement of a 90...