Last Updated on April 28, 2026 by Deon
Why the Dollar Isn’t Getting Stronger
Usually, when oil prices go up and there are problems in the world, like in the Middle East, the dollar gets stronger. That’s not happening right now.
ING says there are two reasons for this:
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The US Stock Market Is Doing Well
The US stock market is holding up well.
The global markets are also calm with no sell-offs.
This means people don’t need to buy dollars as a place to put their money.
In terms of when everything is calm, traders don’t rush to buy dollars.
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Month-End Adjustments Are Affecting the Dollar
At the end of the month, investors rebalance their investments, which puts pressure on the dollar.
The US stocks did better in April, so investors are making adjustments that make people want to buy dollars.
What’s Happening in the Currency Market Now
The EUR/USD currency pair is moving more with the stock market than with oil prices or interest rates.
The Australian Dollar and Canadian Dollar are doing better than expected.
This means traders are feeling positive about taking risks and are choosing currencies that are linked to growth.
What Might Happen Next
ING thinks this situation might not last long.
Once the month-end adjustments are done, the dollar might get stronger again.
If the problems in the world get worse, like if negotiations in the Gulf don’t work out, people might want to buy dollars
The markets are also waiting to see what the Federal Reserve decides and what big tech companies like Alphabet, Amazon, Microsoft, and Meta say about their earnings.
For now, traders are being cautious. Not making big moves.
What’s Important for Traders to Know
The dollar is holding up but not getting much stronger.
Now, how people feel about taking risks in the stock market is more important, than usual.
In the term, the dollar might just move sideways or not much.
In the term, the dollar might get stronger if things change.
