Forex Today: US Dollar continues to weaken to start week
Here is what you need to know on Monday, May 26:
The US Dollar (USD) continues to weaken against its major rivals to begin the new week as investors remain cautious about the economic growth prospects following United States (US) President Donald Trump's latest tariff threats. Stock and bond markets in the US will remain closed in observance of the Memorial Day holiday on Monday.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.37% | -0.38% | 0.14% | -0.27% | -0.50% | -0.62% | -0.09% | |
| EUR | 0.37% | 0.00% | 0.57% | 0.11% | -0.11% | -0.25% | 0.30% | |
| GBP | 0.38% | -0.01% | 0.23% | 0.10% | -0.12% | -0.25% | 0.31% | |
| JPY | -0.14% | -0.57% | -0.23% | -0.42% | -0.66% | -0.84% | -0.25% | |
| CAD | 0.27% | -0.11% | -0.10% | 0.42% | -0.22% | -0.35% | 0.21% | |
| AUD | 0.50% | 0.11% | 0.12% | 0.66% | 0.22% | -0.17% | 0.43% | |
| NZD | 0.62% | 0.25% | 0.25% | 0.84% | 0.35% | 0.17% | 0.56% | |
| CHF | 0.09% | -0.30% | -0.31% | 0.25% | -0.21% | -0.43% | -0.56% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
President Trump said on Friday that he is recommending a "straight 50% tariff" on imports from the European Union (EU), adding that their discussions were going nowhere. Additionally, he noted that he was planning to impose tariffs on Apple iPhones not manufactured in the US and suggested that they could do something similar with Samsung products. The USD Index extended its slide on Friday and lost nearly 2% for the week.
President Trump announced on Sunday that he agreed to an extension on the 50% tariff deadline on the EU until July 9 after a phone call with European Commission President Ursula von der Leyen. Nevertheless, the USD Index continues to stretch lower early Monday and was last seen trading at its lowest level in a month near 98.80, losing about 0.3% on the day. Meanwhile, US Senator Ron Johnson told CNN News on Sunday that he thinks that they will have enough votes to stop President Trump's spending/tax cut bill until he gets serious about spending reduction and reducing the deficit.
EUR/USD benefits from the broad-based USD weakness and trades at a fresh multi-week high above 1.1400 in the European morning on Monday. Later in the session, European Central Bank (ECB) President Christine Lagarde is scheduled to deliver a speech.
GBP/USD extends its rally after gaining nearly 2% in the previous week and trades at its highest level since February 2022 above 1.3550.
USD/JPY stays relatively quiet and fluctuates in a tight channel below 143.00 after losing more than 2% last week.
Gold capitalized on safe-haven flows and registered impressive gains last week. XAU/USD corrects lower early Monday and trades below $3,350.
USD/CAD stays under bearish pressure following the previous week's sharp decline and trades below 1.3700 for the first time in 2025.
AUD/USD preserves its bullish momentum after rising more than 1% on Friday and trades at a fresh 2025-high above 0.6500.
Tariffs FAQs
Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.
Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.
There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.
During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
