US Dollar Weakens Across Multiple Currencies Amid Global Trade, Inflation Concerns

The U.S. dollar has experienced notable weakness against several currencies amid cautious economic signals and ongoing geopolitical tensions under President Trump's administration. USD/MXN and USD/CAD pairs have dipped, influenced by Federal Reserve caution, U.S.-China trade talks, and uncertainties in Middle East security, with recommendations to sell around current resistance levels. Meanwhile, the USD/ZAR has traded within tight ranges, with investors awaiting local manufacturing data and the U.S. Consumer Price Index, reflecting a cautious stance on potential further USD weakness. Despite talk of 'de-dollarization,' experts highlight that dollar liabilities have expanded over the past decade, suggesting continued global reliance on the dollar, though some investors anticipate a gradual decline in the dollar's exchange rate. The U.S. administration's ongoing trade negotiations, including letters to multiple countries outlining trade deal terms, further contribute to market uncertainty. Overall, market participants are balancing geopolitical risks, trade developments, and economic data releases in their currency strategies.