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USD dollar could rise if recession avoided

March 12, 2025 at 10:28PM

Commerbank says the US dollar could rise if the US avoids a recession:

U.S. trade policy uncertainty is currently elevated due to Trump’s back and forth on tariffs

market is leaning towards the the risk of recession increasing significantly with each additional round of tit-for-tat tariffs, weighing on equities, Treasury yields and the USD

Hard U.S. economic data, however, is so far looking pretty decent – weak January retail sales excluded.

USD (DXY) update:

That ‘end of USD uptrend’ call from January played out OK. Whew!

The steep up trend line for the USD appears to have been broken

Updating the USD ‘battle of the trendlines’

This article was written by Eamonn Sheridan at www.forexlive.com.

USD dollar could rise if recession avoided