USD Stabilizing Amid Trade Talks?

USD Struggles for Direction as Trade Talks Begin

1. Market Situation:
On April 16, 2025, the U.S. dollar showed signs of stabilizing after weeks of decline. The Dollar Index (DXY) dropped below 100 for the first time since July 2023, reflecting pressure from rising U.S.–China trade tensions.

2. Key Drivers:

Trade friction: New tariffs under the Trump administration sparked fears of economic slowdown, weakening investor confidence in the dollar.

Safe-haven shift: Investors moved toward assets like the Japanese yen, Swiss franc, and gold, reducing the dollar's traditional safe-haven appeal.

3. Outlook:
Analysts warn that if trade negotiations stall, the dollar may remain under pressure. However, U.S. bond yields and Fed policy could influence future dollar movements.