_{ECONOMIC NEWS}

​$2.5 Trillion Threat: Why the Dollar’s Dominance May Be at a Breaking Point

Stephen Jen of Eurizon SLJ Capital warns the U.S. dollar may face a $2.5 trillion "avalanche" of selling as Asian countries begin to reduce their large holdings of the currency. Years of trade surpluses with the U.S. have led to significant dollar reserves across Asia, and rising tensions from a U.S.-led trade war are prompting some investors to repatriate funds or hedge against dollar weakness.

As Asian currencies strengthen and U.S. interest rates fall, unhedged "naked long" dollar positions held by nations like China, Taiwan, Malaysia, and Vietnam may accelerate outflows. Jen suggests this trend reflects a growing imbalance in the global economy that threatens the dollar’s dominance. The Bloomberg dollar gauge has already dropped 8% since February, signaling potential further weakness. Read More.

_{US NEWS}

Tariff Shock Splinters Global Central Banks: Fed Stalls as Others Shift

Central banks across the globe are increasingly diverging in their responses to economic uncertainty, as U.S.-led tariffs complicate monetary policy decisions. While the U.S. Federal Reserve is holding interest rates steady amid rising inflation and slowing growth, other major economies are moving in different directions:

• UK cut rates by 25 bps, though its policymakers are divided.

• Eurozone and New Zealand are expected to continue easing.

• Canada, Sweden, and Australia are holding steady for now but eyeing cuts.

• Switzerland is considering a return to negative rates to defend exports.

• Japan remains cautious despite earlier expectations of rate hikes.

• Norway is resisting cuts due to inflation risks tied to oil and currency weakness.

The mixed strategies highlight how global inflation, trade war fears, and shifting currency values—especially a weakening U.S. dollar—are reshaping monetary policy around the world. Read Now.