The US dollar skidded in European trade on Monday to a two-week trough against a basket of major rivals under heavy selling pressures after US credit rating downgrade.
US President Donald Trump once again called on the Federal Reserve to cut rates soon as a necessary measure to support the US economy against increasing global challenges.
The Index
The dollar index fell 0.9% today to 100.06, the lowest since May 9, with a session-high at 100.98.
On Friday, the index rose 0.2%, the second profit in three days following aggressive US inflation forecasts data.
The index rose 0.55% last week, the fourth weekly profit in a row as US recession concerns diminished after the US-China deal to pause tariffs for 90 days.
US Credit Rating
Moodys cut US sovereign rating by one notch on Friday, becoming the last major rating agency to do such a step.
Moodys pointed to the growing US debt burden, which reached a record $36 trillion, reflecting the structural fiscal challenges facing the worlds largest economy.
Trade Developments
US Treasury Secretary Scott Bessent stated on Sunday that President Donald Trump will reimpose the reciprocal tariffs announced last month on trade partners who dont negotiate with a good intention.
US Rates
US President Donald Trump once again called on the Federal Reserve to cut interest rates in posts on his social media accounts.
According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in June stood at just 8%.
The odds of a 0.25%% Fed rate cut in July stood at 37%.
Traders now expect 50 basis points overall of Fed rate cuts this year, likely starting in October.
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