The US dollar strengthened significantly in Asian trading on Thursday morning after reports that a US court had blocked the implementation of President Donald Trump’s previous ‘Liberation Day’ import tariffs.
The Manhattan-based Court of International Trade stated that the US Constitution gives Congress exclusive authority to regulate trade with other countries without being overridden by the President’s power.
The Trump administration filed an appeal on the surprising announcement.
The market also showed a positive reaction with risk-on sentiment assessments that have again increased investor appetite.
The US dollar, which had previously moved weakly, is showing strength following a slow recovery at the beginning of the week.
Also in focus early this morning, the FOMC meeting minutes were published for investors to examine more clearly the details of the discussions in early May.
Federal Reserve (Fed) officials are aware of the economic challenges that will be faced in the near future with the risk of a spike in inflation and an increase in the unemployment rate.
Therefore, the latest economic data will continue to be watched in making decisions for further monetary policy setting.
Market focus in the New York session today will be on the US economic growth report to be published.
The second reading for the US Gross Domestic Product (GDP) data for the first quarter of 2025 is expected to remain the same as previously published, with a figure of -0.3%.
The reading, which shows the contraction of the world's largest economy, has made the market cautious of early signs of recession, thus affecting the gloomy movement of currencies.
At the end of the week, the Fed's favorite inflation indicator, the PCE price index, which measures US personal consumption spending, will be given attention.
Other major currencies are increasingly reducing the losses they made last week after the US dollar regained its strengthening momentum.
