US Dollar Holds Firm Amid Tariff Tensions and Soft GDP Growth

The US Dollar maintained its strength in global markets despite the release of weaker-than-expected GDP growth data. Investors are currently balancing the negative impact of soft economic growth against the support provided by ongoing tariff discussions. Tensions surrounding trade policies continue to bolster the dollar's appeal as a safe-haven asset amid geopolitical uncertainty. Analysts suggest that potential new tariffs could trigger inflationary pressures, potentially prompting the Federal Reserve to keep interest rates elevated. The Dollar Index (DXY) showed significant resilience against major currency pairs, including EUR/USD and USD/JPY, during recent sessions. Market participants are now closely monitoring future trade policy developments to gauge the long-term trajectory of the greenback.