USD recovery remains fragile as tariffs and economic risks mount – BBH

Source Fxstreet

US Dollar (USD) and Treasury yields are steady just above Friday’s lows while US equity futures point to a modest rebound. Any USD recovery looks fragile in our view, and the broader downtrend should reassert itself, BBH FX analysts report.

USD recovery fragile amid policy credibility and tariff concerns

"First, US policymaking credibility is increasingly under threat. Fed Governor Adriana Kugler’s departure on August 8, gives President Donald Trump an opportunity to appoint a replacement aligned with his monetary policy agenda. Meanwhile, the dismissal of the Bureau of Labor Statistics (BLS) head by President Trump immediately after the poor July jobs data risks damaging perception of US economic data integrity."

"Second, the US economy is showing cracks while the full hit from tariffs has yet to come. The average effective US tariff rate is estimated at 18.3% as of August 1, the highest since 1934. That’s up from 2.4% in January, 7% in May and roughly 16% in June and July. The higher tariffs are projected to lower real GDP growth by -0.5 percentage points in both 2025 and 2026 and increase consumer prices by 1.8% in the short-run."

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Germany CPI Preview: Headline inflation expected to rise 2.1% YoY in AugustThe Federal Statistical Office of Germany (Destatis) will publish the country’s preliminary estimate of the Harmonized Index of Consumer Prices (HICP) inflation data for August on Friday at 12:00 GMT.
Author  FXStreet
Aug 29, Fri
The Federal Statistical Office of Germany (Destatis) will publish the country’s preliminary estimate of the Harmonized Index of Consumer Prices (HICP) inflation data for August on Friday at 12:00 GMT.
placeholder
Forex Today: US Dollar stabilizes ahead of key PCE inflation dataThe US Dollar (USD) finds a foothold early Friday after posting losses for three consecutive days.
Author  FXStreet
Aug 29, Fri
The US Dollar (USD) finds a foothold early Friday after posting losses for three consecutive days.
placeholder
Pound Sterling corrects ahead of US PCE inflation dataThe Pound Sterling (GBP) corrects to near 1.3500 against the US Dollar (USD) during the European trading session on Friday.
Author  FXStreet
Aug 29, Fri
The Pound Sterling (GBP) corrects to near 1.3500 against the US Dollar (USD) during the European trading session on Friday.
placeholder
Solana Price Hits 6-Month High, Unbothered By $432 Million SellingSolana has surged to a six-month high, continuing its strong uptrend in the broader crypto market.
Author  Beincrypto
Aug 29, Fri
Solana has surged to a six-month high, continuing its strong uptrend in the broader crypto market.
placeholder
The “No-Error Era” for AI Chip Stocks: Marvell Meets Expectations Yet Plunges 11%Despite delivering solid results, Marvell stock plummeted 11.28% in after-hours trading after its Q3 revenue guidance came in slightly below expectations.
Author  TradingKey
Aug 29, Fri
Despite delivering solid results, Marvell stock plummeted 11.28% in after-hours trading after its Q3 revenue guidance came in slightly below expectations.
Related Instrument
goTop
quote