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Investing.com - The U.S. dollar has been on a broad downtrend for much of 2025, but Bank of America Securities has seen signs of reversals in this move lower.
At 08:25 ET (12:25 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, gained 0.1% to 97.810, but has fallen almost 10% so far this year.
“We have been highlighting the weakening of the broad USD downtrend in the last two reports,” said analysts at Bank of America Securities, in a note dated July 14, but “USD/CAD and USD/JPY showed the highest risks of USD downtrend reversal.”
Over the past week, USD/JPY has become the first pair to enter a USD uptrend in the G10 currencies.
USD/JPY rose 0.1% to ¥147.93.
“USD/JPY spot has been flat in U.S. trading hours this month on lack of negative U.S. economic data surprises. European and Asia investors have turned more bullish on USD/JPY, potentially on the back of hawkish tariff letters from the U.S. and to hedge the upcoming Japan Upper House election,” BofA said.
Trend continuation sees USD/JPY rising above ¥150 in the near-term and we like to maintain a bullish USD view this week on economists’ expectation of resilient US CPI and retail sales data, the bank said.
The risk to the bullish USD/JPY view would be a negative U.S. economic data surprise driving the U.S. dollar broadly lower again, BofA added.