FX.co ★ Dollar Holds Steady in Thin Holiday Trade

On Friday, the US dollar maintained its position against major currencies, as trading was minimal due to the Good Friday holiday, which kept many global markets closed. This limited activity resulted in the greenback remaining close to its three-year low. Pressure on the dollar arose from concerns over the economic consequences of tariffs and growing policy unpredictability under the Trump administration. Nonetheless, market sentiment began to stabilize as the US engaged in trade discussions with significant partners such as Japan and Italy. Additionally, President Trump suggested a potential easing of trade tensions with China, expressing that he does not wish for tariffs to escalate further and might even contemplate reducing them in the future. Concurrently, Trump criticized Federal Reserve Chair Jerome Powell for delaying rate cuts, suggesting that Powell's removal "can’t come quickly enough." In response, Powell emphasized on Wednesday that the Fed is cautiously assessing the effects of tariffs prior to taking any action. Economically, jobless claims dropped to a two-month low, reflecting a robust labor market.