This week has seen significant volatility in the markets, with the dollar weakening and Treasury markets experiencing a major selloff. The DXY index fell 3.7% since Wednesday, and the euro has reached a three-year high against the USD. The yield on the 10-year Treasury bond surpassed 4.5% again, indicating a potential for the largest weekly loss since 2019. Analysts suggest that a baseline tax on trading partners could worsen inflation and economic growth. Consumer sentiment has declined significantly, dropping to 50.8, while the one-year inflation outlook has jumped from 5% to 6.7%. The U.S. administration faces a tight deadline of 88 days to finalize deals with 150 countries amidst rising tariffs from China on U.S. imports. While hopes persist for approaching trade agreements, skepticism remains high due to recent White House communications. As the week concludes, many are looking to unplug for the weekend.

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