May 26, 2025
United States:
Dollar Extends Drop as EU Tariff Delay Boosts Risk-Sensitive FX
A gauge of the dollar slid toward its lowest level in nearly two years after US President Donald Trump’s decision to postpone higher tariffs on the European Union boosted other currencies with strong links to global trade.
The Bloomberg Dollar Spot Index fell as much as 0.4% on Monday and is headed toward a level unseen since July 2023.
Europe:
ECB Faces Greater Risk Inflation Will Undershoot 2%, Simkus Says
There’s a growing danger that inflation will fall short of the European Central Bank’s 2% target, according to Governing Council member Gediminas Simkus.
The balance of risks for consumer prices is to the downside due to trade friction with the US and a stronger euro, the Lithuanian official said Monday.
Asia:
Japan Sovereign Bonds Trim Recent Losses That Rattled Investors
Japan’s super-long yields are pulling back from record highs, but investors remain cautious before a 40-year bond auction on Wednesday.
The nation’s 30-year and 40-year bond yields fell 7 basis points on Monday morning, following moves late last week in US Treasuries and amid risk-averse buying.
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