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May 14, 2025

US Dollar Weakens Following Tariff Rollbacks and Inflation Data

The US Dollar has faced a setback, slipping to 100.50 after the latest inflation data fell short of expectations. This unexpected outcome, along with the easing of tariffs, has shifted market sentiments, reducing pressure on the Federal Reserve’s interest rate tightening plans. As traders analyze the implications of these developments, the performance of the USD against major pairs, including the EUR and GBP, remains a critical focal point. The combination of tariff relief and soft inflation figures is reshaping the dollar’s trajectory in financial markets.

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