US dollar weakens as euro climbs above 1.13 and pound drops towards 1.43

From Investing.com: 2025-05-21 05:30:00

The dollar behaves like a risk-on asset, losing ground as the euro climbs above 1.13 and the pound drops towards 1.43. US Treasury yields rise above 4.5%, raising concerns about the US economy’s fiscal situation.

Trump’s tax cut bill is in focus as the US administration aims to pass the “One Big Beautiful Bill Act”, despite projections of a $3-5 trillion rise in US debt over the next decade. House Republicans may vote on the bill today.

US stocks underperform as risk sentiment worsens amid reports of Israel preparing to strike Iranian nuclear facilities. Retail accounts may have reached their limit in sustaining the current rally.

Gold, oil, and bitcoin rally on Israel-Iran headlines, with gold bouncing above $3,300, oil hovering around $63, and bitcoin potentially retesting its all-time high of $109k.

The UK CPI report shows an acceleration, with indicators climbing to 3.5% and 3.8%, the highest levels since 2024. Despite the positive data, the pound remains little changed against the dollar and euro.



Read more at Investing.com: US Dollar Weakness Accelerates as Risk Appetite Fades