FX.co ★ Dollar Index Holds Monthly Plunge

On Wednesday, the dollar index hovered around 99.4, signaling an impending nearly 5% decline for April, remaining close to last week's three-year low of 98.3. This movement is attributed to growing indications of economic damage from tariffs, prompting a noticeable shift away from dollar-denominated capital markets. In the first quarter, the US GDP contracted by an annualized rate of 0.3%—a stark contrast to predictions of slight growth—marking the first decrease since 2022. The contraction resulted from rising imports and a notable drop in spending growth. In addition, the PCE prices surged beyond expectations, and employment growth, as reported by the ADP, was halved. Meanwhile, the Eurozone's GDP growth exceeded market forecasts, further supporting investors' inclination toward European assets.