What Happened
- U.S. Dollar weakness continued throughout May, reaching its lowest point in three years with the Bloomberg Dollar Spot Index dropping by 1.1% in value
- Resilience in the Mexican economy kept MXN on the rise, hitting its strongest value over the Buck in nine months as last month came to a close
- Euro fortunes continued as the shared currency climbed to its highest point since beginning of 2023
- Despite “dovish” policy from the Bank of England, GBP surged to its best value in about three years
- Japanese Yen is establishing itself as the Go-to safe haven rising by 1.0% in May; up 9.5% thus far in 2025
Monex USA’s View
- USD prospects for advancement do not look good after a credit downgrade threw havoc at the perception of the American economy
- Lack of interest in purchasing U.S.-treasury bonds signaling that the “Sell America” trade remains in play, thus keeping downward pressure on the Buck
- Mexican Peso could remain at elevated levels with return of carry-trade popularity as it remains a source of yield for investors and FX traders
- June will see plenty of central bank meetings that will attempt to provide guidance in midst of uncertainty
- Potential for ceasefires and peace, along with any tariff delays will keep markets and Dollar on edge
