The usual array of suspects is being cited:

  • Moody’s downgraded the U.S. sovereign credit rating from Aaa to Aa1, citing concerns over rising federal debt and persistent fiscal deficits. It may yet have further US bond market implications.

  • Trump's proposed tax bill. The bill is projected to increase the national debt by $3 to $5 trillion, raising concerns about fiscal irresponsibility and adding pressure on the dollar. It seems 'progress' is being made.

  • Ongoing trade tensions, including potential new tariffs and discussions at the G7 finance ministers meeting, have created additional uncertainty.

DXY 5 minute candles usd 21 May 2025 2
Source: Forex Live