- Low American data and current price uncertainty weigh on the USD.
- The activity of the American services took place in May for the first time in almost a year.
- Lack of progress in commercial negotiations adds pressure on the dollar.
The US dollar index (DXY) is practically negotiating flat Thursday, consolidating losses after a downward overthrow on Wednesday, as slowdown and employment data, associated with the current uncertainty, relied the fears of an upcoming recession.
Reading the management of management services of the United States Institute revealed that commercial activity in the sector had contracted for the first time in almost a year. The index rose to 49.9 in May from 51.6 in April compared to an improvement in the level of 52.0 provided by the market.
Weak data and commercial concerns of the United States maintain the USD on the defensive
These figures follow another negative surprise in the manufacturing sector, and a sharper decline than expected in factory orders, all figures that indicate weak American economic growth in the second quarter.
A little earlier, the US employment report of the ADP displayed a poor increase of 37K compared to the private payroll in May against the expectations of an increase of 115k. These figures put doubt in the non -agricultural pay report on Friday and increased fears of a significant slowdown in the creation of jobs.
Beyond that, US President Trump complained that concluding an agreement with Chinese President XI is “extremely difficult”, which has brought the lack of progress on trade negotiations in the foreground, further attenuating feeling and adding pressure to an American dollar.
American-Chinese trade faq
In general, a trade war is an economic conflict between two or more countries due to extreme protectionism at one end. This implies the creation of commercial barriers, such as prices, which cause counter-barriers, an increase in import costs, and therefore the cost of living.
An economic conflict between the United States (United States) and China began in early 2018 when President Donald Trump set trade obstacles on China, claiming unfair commercial practices and an intellectual property flight from the Asian giant. China has taken reprisal measures, imposing prices on several American products, such as cars and soybeans. Tensions intensified until the two countries signed the US-China phase trade agreement in January 2020. The agreement required structural reforms and other changes to the economic and commercial regime of China and pretended to restore stability and confidence between the two nations. However, the coronavirus pandemic has focused on the conflict. However, it should be mentioned that President Joe Biden, who took office after Trump, maintained prices in place and even added additional samples.
Donald Trump's return to the White House as 47th American president sparked a new wave of tensions between the two countries. During the 2024 electoral campaign, Trump has committed to imposing prices of 60% on China once he became his functions, which he did on January 20, 2025. With Trump back, the American-Chinese trade war is supposed to resume the untrings in the global supply chains, resulting in a reduction in investment, in particular investments, and food consumption.
