Post #15741

Dollar Slide Could Influence EU Rates The dollar tried to stabilize, but it’s still on pace for its worst week since April as confidence in the U.S. continues to erode. Trump brushed off the recent slide, calling the dollar “great,” which traders took as a green light to keep selling ahead of the Fed decision. Capital is rotating out of the U.S. — other currencies and gold are ripping as investors grow uneasy about U.S. policy direction, trade tensions, and questions around Fed independence. Meanwhile, European officials are now getting uncomfortable with euro strength, saying it could weigh on inflation and even influence future rate decisions. What makes this move notable is that it’s not driven by weak U.S. growth — the economy is still running hot. This is more of a confidence story than a fundamentals story, and as long as policy uncertainty stays high, dollar pressure can persist. - Alan