empty
InstaForex Loprais Team - Official participant of the Dakar rally
InstaForex Loprais Team - Official participant of the Dakar rally
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
03.04.2025 09:12 AM
Why Is the Dollar Falling If Tariff Issues Affect Everyone? (Correction Likely for GBP/USD and EUR/USD After Sharp Rally)
Open trading account Open demo account

The U.S. dollar had recently managed to stay above the key 104.00 mark on the ICE index, giving hope that a further decline might be avoided. But why did it tumble against other major currencies, especially considering that trade tariffs should also negatively impact the countries targeted by them?

Yes, this might seem odd at first glance, but there are clear reasons behind it, and they are likely to continue weighing on the dollar until the situation stabilizes.

As stated in a previous article, had Trump not introduced anything beyond the initially announced tariffs, the dollar might have received noticeable support yesterday. But that didn't happen. Instead, the U.S. president went beyond previously priced-in measures on the Forex market, equity indices, and Treasury yields. In addition to a base tariff of 10%—a more moderate figure than the previously floated 20%, which would have been seen as a positive—he announced additional tariffs for certain countries. According to Evercore ISI, the new weighted average tariff rate may rise to 29% after all new tariffs are implemented, the highest in over a century. This means that, collectively, the U.S. is imposing significantly higher trade barriers than initially expected.

Fears of a full-blown economic crisis and recession in the U.S. have driven investors into Treasuries, causing yields to plunge and adding downward pressure on the dollar. This decline in the Forex market is not due to strength in other currencies but rather the dollar's weakness. For example, the euro's rise contradicts the eurozone's economic issues. According to recent data, declining inflation raises the likelihood of further interest rate cuts—clearly a bearish factor for the euro versus the dollar, which might eventually find support on expectations of rate hikes if inflation picks up later this year.

In short, the dollar's drop is mostly an emotional reaction. This decline may be short-lived, ending once there's more clarity on the actual U.S. tariff rates and the retaliatory measures from trade partners. As mentioned above, fear of the unknown is pushing the dollar down. However, this decline could benefit the U.S., as it improves the competitiveness of American exports, which could strengthen the economy in the long run. In the meantime, speculators will likely take full advantage of the "tariff reality" before entering the market again at lower, more favorable price levels.

Outlook for Today:

This image is no longer relevant

This image is no longer relevant

GBP/USD

The pair is trading above the 1.3100 level. If it fails to hold above this mark, a pullback toward 1.3035 and then 1.3000 is likely.

EUR/USD

The pair is trading above the 1.0880 level. If it fails to stay above this level, a downward correction toward 1.0940 and then 1.0900 is possible.

Pati Gani,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Fundamental analysis
Donald Trump Plans to Suppress the Uprising For several consecutive days, protests and unrest have continued in some major U.S. cities, sparked by Donald Trump's new immigration policy. This time, the U.S. President has decided to deport
Chin Zhao
00:35 2025-06-12 +02:00
1165
Fundamental analysis
EUR/USD. In the Shadow of the Trade Deal: U.S. Inflation Report Pressures the Greenback A mixed U.S. inflation report pressured the greenback. The dollar index returned to 98.00, while the EUR/USD pair refreshed its weekly high, rising to 1.1491. Additional pressure on the U.S
Irina Manzenko
00:35 2025-06-12 +02:00
1165
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Donald Trump Plans to Suppress the Uprising

For several consecutive days, protests and unrest have continued in some major U.S. cities, sparked by Donald Trump's new immigration policy. This time, the U.S. President has decided to deport
Chin Zhao 00:35 2025-06-12 UTC+2

EUR/USD. In the Shadow of the Trade Deal: U.S. Inflation Report Pressures the Greenback

A mixed U.S. inflation report pressured the greenback. The dollar index returned to 98.00, while the EUR/USD pair refreshed its weekly high, rising to 1.1491. Additional pressure on the U.S
Irina Manzenko 00:35 2025-06-12 UTC+2

Will the Dollar Maintain the Status Quo?

To make accurate predictions about the future, one must examine the past. The more than 10% rally in EUR/USD since the beginning of the year has been driven by four
Marek Petkovich 00:35 2025-06-12 UTC+2

XAU/USD. Analysis and Forecast

Currently, the price of gold remains confined within a weekly range. The key factors supporting price growth include a decision by the U.S. federal appellate court to uphold President Donald
Irina Yanina 18:35 2025-06-11 UTC+2

USD/JPY. Analysis and Forecast

At this stage, the Japanese yen continues to trade within an intraday consolidation range, approaching the two-week low against the U.S. dollar reached yesterday. The main factors influencing the movement
Irina Yanina 18:33 2025-06-11 UTC+2

EUR/GBP. Analysis and Forecast

However, at this point, it lacks follow-through buying, despite a fundamental backdrop that suggests the path of least resistance for spot prices lies to the upside. The weak performance
Irina Yanina 11:38 2025-06-11 UTC+2

Results of the Second Round of U.S.–China Negotiations

The United States and China have concluded two days of important trade negotiations with a plan to resume the flow of sensitive goods — this framework now awaits approval from
Jakub Novak 11:32 2025-06-11 UTC+2

The U.S. and China: A Small Step Forward. What's Next? (Potential for a reversal and decline in EUR/USD and NZD/USD pairs)

Representatives from the United States and China have reached a framework agreement on trade following two days of high-level talks in London. But why isn't there a sense of euphoria
Pati Gani 09:52 2025-06-11 UTC+2

The Market Approaches Its Rubicon

The devil is in the details—and the U.S. and China haven't provided investors with those details regarding their newly reached deal. This lack of transparency risks cutting off the momentum
Marek Petkovich 09:18 2025-06-11 UTC+2

What to Pay Attention to on June 11? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic reports are scheduled for Wednesday. Therefore, any sharp reversal or strengthening of movement may only occur at the start of the U.S. trading session, when
Paolo Greco 06:10 2025-06-11 UTC+2

Top analytics

Relevance up to 09:00 UTC--5
GBP/USD Analysis on June 11, 2025
18:51 2025-06-11
Wave analysis
Relevance up to 11:00 UTC--5
EUR/USD Analysis on June 11, 2025
19:00 2025-06-11
Wave analysis
Relevance up to 11:00 UTC--5
EUR/USD. In the Shadow of the Trade Deal: U.S. Inflation Report Pressures the Greenback
00:35 2025-06-12
Fundamental analysis
Relevance up to 14:00 UTC--5
Donald Trump Plans to Suppress the Uprising
00:35 2025-06-12
Fundamental analysis
Relevance up to 08:00 2025-06-16 UTC--5
Will the Dollar Maintain the Status Quo?
00:35 2025-06-12
Fundamental analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.