Get Ready for the Greenback’s Glorious Comeback! Barclays Says US Dollar Resurgence is Nigh

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🚨 Attention, dollar-lovers and currency enthusiasts! 🚨 The US dollar might be gearing up for a triumphant return, according to Skylar Montgomery Koning, an FX strategist at the banking behemoth Barclays.

Koning spilled the beans to Bloomberg, saying that the dollar has already factored in the negative impact of President Donald Trump’s tariffs in its 10% drop year-to-date. 💰 Now, it’s ready to rise against foreign currencies like a phoenix from the ashes.

“The fact that some of the more problematic policies from the US administration have been dialed back – and there are deals getting done – means that the economic pain for the US won’t be as bad as originally feared.”

At the time of writing, the US dollar index (DXY) is trading at 97.57. 📈

The Barclays outlook comes after the US dollar had its worst first-half performance in over 50 years. The DXY plunged nearly 11% from January to June of this year, marking its steepest decline since the first six months of 1973 when the index dropped by 14.8%. 😱

Meanwhile, Kathy Jones, a chief fixed income strategist at the financial services giant Charles Schwab, told Bloomberg Television that US trade policies and their resulting inflation could delay anticipated Federal Reserve rate cuts until December or next year. Rate cuts tend to devalue the dollar. 💸

On the other hand, the CME FedWatch Tool estimates there’s a 62.7% chance the Fed will cut the rate by 25 basis points at the Federal Open Market Committee (FOMC) meeting in September. The FedWatch Tool generates probabilities using the 30-day Fed Funds futures prices. 🔮

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2025-07-09 20:17