Forex Today: US Dollar Weakens Amid Economic Growth Concerns

Forex Today: US Dollar Continues to Lose Strength to Start Week

The US Dollar (USD) began the week under selling pressure, continuing its recent downward trajectory against major global currencies. Market participants are responding to renewed fears over the US economic outlook, fueled by President Donald Trump’s recent threats of imposing additional tariffs. These trade concerns have dampened sentiment and raised doubts about future economic growth in the United States.

As a result, safe-haven and risk-sensitive currencies alike have been gaining ground against the USD in early Monday trading. The decline also reflects broader uncertainty over the US fiscal path, particularly with rising deficits and expectations for future Federal Reserve rate cuts.

Adding to the quiet trading conditions is the observance of Memorial Day in the United States. US stock and bond markets remain closed on Monday, which typically results in lower liquidity and reduced volatility.

Investors are now looking ahead to key US economic data scheduled later in the week, including the release of the Federal Open Market Committee (FOMC) Minutes and the Personal Consumption Expenditures (PCE) Price Index — a crucial inflation gauge for the Fed.

Until then, the US Dollar may remain vulnerable as risk sentiment and policy expectations continue to drive currency markets.