USD Sentiment: Political Risks Surface as Administration Adjusts Policy

Use of executive power and domestic stability are back in focus as President Trump adjusts his administration's immigration enforcement tactics in Minneapolis following reports of national unrest.

The Greenback's Reaction

While currency markets often look past localized domestic events, the mention of “national unrest” and policy pivots at the federal level introduces an element of political unpredictability. Historically, prolonged domestic instability can dampen the appeal of the US Dollar (USD) as a safe haven, leading capital flows toward alternatives like Gold (XAU) or the Swiss Franc (CHF).

Technicals

• DXY (Dollar Index): Watch for weakness if unrest headlines dominate the news cycle.
• Safe Havens: heightened volatility may bid up XAU/USD and JPY.