USD: Weakness continues amid Trump comments – Commerzbank

FXStreet Insights Team FXStreet

The Dollar remains under pressure following comments from President Trump, which have contributed to its decline against other currencies. The Dollar Index has fallen to its lowest level since February 2022, driven by uncertainties over U.S. tariff policies and geopolitical tensions. The focus now shifts to the upcoming Federal Reserve meeting, where no changes to the Fed funds target range are expected, Commerzbank's Charlie Lay and Moses Lim note.

Dollar under pressure from political comments

"The main theme overnight was the weak USD. Comments from President Trump sent the USD down another leg against an already fragile backdrop."

"The USD has been under pressure of late, with the Dollar Index at the lowest level in nearly four years. This was due to a combination of factors, including uncertainties over US tariff policies, geopolitical tensions, and uncertainties over Fed independence."

"However, the damage was done and the sell USD trade gathered momentum. The Dollar Index fell to the lowest level since February 2022."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD clings to daily gains, still below 1.1900

EUR/USD manages to reverse two daily pullbacks in a row and advances modestly on Thursday, hovering around the 1.1880 zone amid the inconclusive price action around the US Dollar. Meanwhile, weekly Initial Claims rose more than expected last week, while attention is expected to shift to the upcoming US CPI data on Friday.

GBP/USD picks up pace, hits 1.3640

GBP/USD trades with modest gains around 1.3640 so far on Thursday. Indeed, Cable looks to leave behind the weakness seen in the first half of the week in a context of an equally erratic performance in the Greenback and disappoting UK data releases.

Gold stays offered below $5,100

Gold keeps the choppy trade well in place on Thursday, navigating the area below the $5,100 mark per troy ounce amid the lack of clear direction in the Greenback, declining US Treasury yields across the curve and caution ahead of Friday’s publication of US CPI.