The US dollar was stable at first but dropped after Donald Trump's speech at the World Economic Forum in Davos.

The US dollar was stable at first but dropped after Donald Trump's speech at the World Economic Forum in Davos.
The US dollar was stable at first but dropped after Donald Trump's speech at the World Economic Forum in Davos.

The dollar falls in conjunction with Trump's speech.. What is the reason?

Trump said he wants interest rates in the US to be lowered immediately and suggested other countries should do the same.

This made people think the US Federal Reserve will cut interest rates more than expected, causing the dollar to weaken.

The dollar also fell because of negative job data, showing more people applied for unemployment benefits than expected.

More unemployment claims mean fewer people are working and spending, which could slow down inflation in the US.