Trump's tariff storm drags down the dollar! Key signals indicate a huge change in the global economic landscape
During the Asian session, the US dollar index showed a narrow tug-of-war trend, and may record a monthly decline for the fifth consecutive month. Senior traders have adjusted their positions to cope with the "policy earthquake" caused by Trump's tariff policy. It is particularly noteworthy that the PCE inflation index, which the Federal Reserve values most, will be released tonight in Eastern Time. This report may become the last straw that breaks the camel's back for the dollar.
Judicial battle triggers market panic
The dramatic turn of the financial market this week began with the "midnight ruling" of the federal court. In the early morning of May 29th local time, the Washington Circuit Court of Appeals suddenly restored Trump's comprehensive tariffs on imported goods. This ruling directly overturned the "tariff unconstitutional" ruling made by the Trade Court the day before.
Economic alarm and debt crisis double attack
Data show that the number of initial jobless claims in the United States unexpectedly climbed to 268,000 last week, and the revised GDP value in the first quarter was also lowered to 1.1%, which all confirm economists' concerns about the "Trump recession".
Even more worrying is the danger signal sent by the global debt market. The auction of 30-year U.S. Treasury bonds was met with a historic cold reception, with the winning rate soaring to 4.85%, while the Bank of Japan was forced to intervene to suppress the yield of 10-year Japanese bonds. According to a report by Deutsche Bank, the debt ratio of the U.S. and Japanese governments to GDP has exceeded 135% and 265% respectively. This unsustainable fiscal situation is shaking the foundation of the U.S. dollar.
Countdown to the decisive battle
As Trump's tariff deadline approaches on July 9, all eyes are on three key points: PCE data, the OPEC+ production meeting next week, and the G7 finance ministers' summit in mid-June. JPMorgan Chase warned that if the core PCE rises by more than 0.4% month-on-month, the Federal Reserve may be forced to make a painful choice between inflation and recession.
This financial tsunami caused by Trump's policies is far from over. When the tariff stick encounters the debt ceiling and protectionism collides with the global supply chain, the summer of 2025 is destined to go down in financial history. The only thing that is certain is that the old order built on the hegemony of the U.S. dollar is shaking violently in this perfect storm.
XAUUSD GOLD XAUUSD XAUUSD XAUUSD GOLD XAUUSD
During the Asian session, the US dollar index showed a narrow tug-of-war trend, and may record a monthly decline for the fifth consecutive month. Senior traders have adjusted their positions to cope with the "policy earthquake" caused by Trump's tariff policy. It is particularly noteworthy that the PCE inflation index, which the Federal Reserve values most, will be released tonight in Eastern Time. This report may become the last straw that breaks the camel's back for the dollar.
Judicial battle triggers market panic
The dramatic turn of the financial market this week began with the "midnight ruling" of the federal court. In the early morning of May 29th local time, the Washington Circuit Court of Appeals suddenly restored Trump's comprehensive tariffs on imported goods. This ruling directly overturned the "tariff unconstitutional" ruling made by the Trade Court the day before.
Economic alarm and debt crisis double attack
Data show that the number of initial jobless claims in the United States unexpectedly climbed to 268,000 last week, and the revised GDP value in the first quarter was also lowered to 1.1%, which all confirm economists' concerns about the "Trump recession".
Even more worrying is the danger signal sent by the global debt market. The auction of 30-year U.S. Treasury bonds was met with a historic cold reception, with the winning rate soaring to 4.85%, while the Bank of Japan was forced to intervene to suppress the yield of 10-year Japanese bonds. According to a report by Deutsche Bank, the debt ratio of the U.S. and Japanese governments to GDP has exceeded 135% and 265% respectively. This unsustainable fiscal situation is shaking the foundation of the U.S. dollar.
Countdown to the decisive battle
As Trump's tariff deadline approaches on July 9, all eyes are on three key points: PCE data, the OPEC+ production meeting next week, and the G7 finance ministers' summit in mid-June. JPMorgan Chase warned that if the core PCE rises by more than 0.4% month-on-month, the Federal Reserve may be forced to make a painful choice between inflation and recession.
This financial tsunami caused by Trump's policies is far from over. When the tariff stick encounters the debt ceiling and protectionism collides with the global supply chain, the summer of 2025 is destined to go down in financial history. The only thing that is certain is that the old order built on the hegemony of the U.S. dollar is shaking violently in this perfect storm.
XAUUSD GOLD XAUUSD XAUUSD XAUUSD GOLD XAUUSD 
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Good at solving all trading problems, doubling the account in a week, and making a stable profit of 300% in a month
🚀Private VIP: t.me/HenryDovitt
👍Market exclusive signal: t.me/Henryffjyfylffc108
🚀Private VIP: t.me/HenryDovitt
👍Market exclusive signal: t.me/Henryffjyfylffc108
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.