The bounce in the USDX since April has faltered at the 100.00 level and will now test the 97.54 lows once more. The weakening dollar could become a headache for foreign currencies.
Donald Trump demanded a U.S. interest rate cut, blaming Federal Reserve Chair Jerome Powell for a recent slowdown in job growth. The president hit out at ‘Too Late’ Powell after payroll firm ADP said jobs in the world’s largest economy slowed last month to the lowest level in more than two years.
A dismal jobs market in Britain also added to the global growth gloom. In America, ADP figures showed a 37,000 increase in jobs added for May, the smallest gain since March 2023. Markets had expected a rise of 110,000, and Trump was quick to blame the Fed’s monetary policy.
On his Truth Social platform, he said: “ADP number out.. ‘Too Late’ Powell must now lower the rate. He is unbelievable. Europe has lowered nine times”.
His latest remarks are likely to reignite his feud with the central bank and may raise concerns that he will attempt to remove Mr Powell from his role as Chairman. Trump previously pulled back on comments suggesting he would fire Powell after a market panic sell-off.
The trend for the U.S. dollar remains to the downside, which can boost tariff income, while overseas nations will have to pay a little more for imports despite an easing of tariffs. The USDX is down around -6% since the tariffs were announced in March.
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