US currency steadies, although affected by concerns over deficits

US currency steadies, although affected by concerns over deficits

On Tuesday, the evergreen buck soared versus a group of key counterparts, clinging above its three-year minimum reached the previous week. Nevertheless, its outlook was heavily distorted by worries that the soaring American fiscal deficit could hurt the American the economy.

The dollar's index against six crucial rivals accounted for 89.347, which is approximately 1.2% higher than Friday's three-year minimum of 88.251.

The US currency has been diving for recent months, amid the positive impetus from soaring American interest rates compensated by a bunch of bearish factors.

Apparently, the view that other major financial institutions are going to catch up with the Fed as for tightening policy in 2018 was found a crucial reason for the greenback’s underperformance.

Suddenly Steven Mnuchin, US Treasure Secretary rekindled worries that America could pursue a weaker greenback policy, explaining it by the fact that its trade deficit tacked on to highest value for nearly a decade.

Soaring worries regarding the American budget deficit, anticipated  to edge up to over $1 trillion next year in the face of a government spending splurge along with huge corporate tax reductions, have  undermined the evergreen buck too.

Market experts tell that Donald Trump's tax trims as well as spending plans could result in an overheated economy, as it’s already firm, generating an unwanted leap in inflation.

Versus the Japanese yen, the evergreen buck managed to tack on 0.2% showing an outcome of 106.77, having rebounded from a 15-month minimum of 105.545 reached on Friday.

As for the common currency, it went down 0.2% hitting $1.2387, sinking from Friday's three-year maximum of $1.2556.

Hopes that the European Central Bank is on the verge of ceasing its stimulus have been the number one driving force behind the common currency’s surge since 2017.


The US NFP Update: What to Wait for?
The US NFP Update: What to Wait for?

The US Bureau of Labor Statistics will announce average hourly earnings, nonfarm employment change (NFP), and the unemployment rate on May 6, at 15:30 MT time.

Latest news

Can the UK CPI surprise?
Can the UK CPI surprise?

The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.

The US Retail Sales Update
The US Retail Sales Update

The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera