The US Dollar Index is poised to post weekly gains after four consecutive weeks of declines, trading at 99.40 just hours before the weekly close on Friday, April 25, up 0.85%. Markets overcame Trump’s threats to exploit the US Federal Reserve and fire Jerome Powell, as well as the easing of tariff concerns, ignoring the figures released just moments ago showing a decline in the US Consumer Confidence Index.
Reports from Trump and China regarding a tariff agreement boosted global markets, and uncertainty eased, leading US, European, and Asian stocks to rise. The US Dollar Index also rose, despite statements from some Federal Reserve members supporting interest rate cuts in light of the tariff threats. In terms of economic data, data released by the University of Michigan just moments ago showed a decline in the US Consumer Confidence Index for April, falling for the fourth consecutive month to 52.2 points, compared to 57 in March. Expectations had indicated a rise to 50.6, recording a monthly decline of 8.4% and a 32.4% year-on-year decline.
This consumer confidence reading stems from rising consumer concerns about rising inflation rates. The Current Conditions Index fell to 59.8 from 63.8, while the Expectations Index fell to 47.3 from 52.6 in March.
Inflation expectations rose to 6.5% in April, compared to 5% in March, the highest reading for the index since 1981. This is the fourth consecutive increase, reflecting concerns about continued rising inflation in the United States.