US dollar pressured as Wall Street weighs Trump's 'Mar-a-Lago Accord'

The US dollar index (DX-Y.NYB) faces downward pressure as investors struggle to interpret the Trump administration's trade policies. A new concept dubbed the "Mar-a-Lago accord" has emerged on Wall Street, a proposal by President Trump to reform global trading, address economic imbalances, and "prevent the overvaluation of the dollar." DZ Bank Head of Monetary Policy and FX Research Sonja Marten joins Morning Brief anchors Seana Smith and Brad Smith to analyze these developments. "It's really difficult to look through the very confused messaging we've been getting here," Marten says about the White House, describing Trump's first month as "difficult." "I think when you look at the market reaction (^DJI, ^IXIC, ^GSPC) ... there's been some movement, but I think investors are really really struggling to see clear headway," she explains, noting that markets are attempting to balance potential economic impacts against determining which White House statements should be taken seriously. Regarding specific tariff policies, Marten emphasizes that today's environment differs significantly from 2016. The current tariffs were implemented immediately upon Trump taking office, and the "level" of tariffs is considerably more severe than during his first presidency. She adds, "I think we have a much more determined Trump to deal with." "A lot of people presume that Trump barks, but he won't bite," Marten states, warning, "I think the market is underestimating and underpricing this risk." To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Angel Smith

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