Dollar Edges Higher
The dollar index edged up to 103.5 on Wednesday but remained near a four-month low as traders weighed the economic outlook and the impact of President Trump’s trade policies. On Tuesday, Trump downplayed fears of a recession, calling the current phase of the economy a “transition period” but refused to rule out a downturn over the weekend.
Meanwhile, trade tensions escalated after U.S. tariffs of 25% on steel and aluminum imports from Canada, Australia, the EU and other countries went into effect on Wednesday, prompting the European Union to announce retaliatory levies on €26 billion worth of U.S. goods starting in April. Investors are also eyeing the upcoming CPI report, which will provide further insight into inflation trends and whether tariffs are already affecting price pressures. The dollar was the most bullish against the Japanese yen but was slightly lower against the euro
Source: Trading Economics
