Stephen Miran, U.S President’s Economic Adviser, on President Donald Trump’s administration efforts to take big steps in curbing inflation. Whatever the reason, their efforts are having a clear and positive effect. Catch The Dollar Under Intense Selling Pressures Right Now The U.S. Dollar is under intense selling pressure right now. This follows upon the release of surprisingly weak Consumer Price Index (CPI) data. Soft inflationary reading and worsening worries about U.S.-China trade relations are fueling a risk-off market sentiment. Unfortunately, this environment is severely limiting the upside potential for many trading pairs.
Most recently, in an interview with Axios, Miran underscored that the White House’s fiscal policies are intended to be inflation-reducing measures. Rising inflation concerns both consumers and investors. The administration will be steadfast in its commitment to advance policies that promote price stability. It’s a most welcome focus, especially as the government seeks to balance growing economic priorities with a changing international trade landscape and intensifying pressures at home.
The most recent CPI data was much softer than anticipated, sparking renewed downtrend selling pressure on the U.S. Dollar. This data is significant in that its implications stretch beyond inflationary worries. It further deepens concerns over a possible long-term trade war between the U.S. and China. Even though the conflict is intensifying, market participants continue to err on the side of risk aversion, further limiting upside potential across the most important currency crosses.
The GBP/USD currency pair wasted no time in jumping to a daily high above 1.2950. Quite recently, it has pulled back but remains above that 1.2900 threshold. This volatility is emblematic of the state of currency markets today, where economic metrics that can change from minute to minute dictate traders’ impulses. At the same time, the EUR/USD currency pair has been amassing a bullish impulse as well, coming within spitting distance to a new 2025 high beyond 1.1100. This upward movement acts as a reminder of the current volatility on forex markets as traders continue to react to real-time data and movements in the geopolitical landscape.
Gold prices have rocketed in the wake of these global economic uncertainties, trading strongly higher beyond $3,120 during the American trading session. Curious about what all the fuss is about this precious metal? It remains near the record high it reached a week ago. In periods of market upheaval, gold is the hedge investors turn to first. This rise in demand pushes its value up further with today’s economic conditions.
To everyone watching, the current economic policy climate has shown the reciprocal relationship between domestic policy and state-to-state relations. As President Trump’s administration works to contain inflation amidst these challenges, market participants are closely monitoring developments that may influence both currency values and commodity prices. How well the administration can steer through these shoals will be central to whether we can get onto a new prosperous and equitable economic path.