The US Dollar index remained relatively stable around 102.8, experiencing a modest rebound after previous volatility. Market sentiment is cautiously optimistic following the announcement of a 90-day tariff pause for certain countries. However, lingering concerns about economic growth and inflation, coupled with existing tariffs on Chinese imports and potential exclusion of the EU from the tariff pause, create an environment of uncertainty. Investors are closely monitoring upcoming US inflation figures for further direction.
- The US Dollar index held steady around 102.8.
- President Trump announced a 90-day pause on reciprocal tariffs for countries that have not retaliated.
- Trump raised tariffs on Chinese imports to 125%.
- The EU may be excluded from the tariff pause.
- Investors remain wary of the broader implications of Trump’s economic policies.
- Markets are focused on the latest US inflation figures.
The short-term tariff reprieve offers a glimmer of stability for the dollar; however, the future value of the currency is still exposed to risks. Escalated tariffs on Chinese goods and the possibility that the EU will not be part of the pause may lead to a negative impact, which means that economic policies could adversely affect growth and inflation, possibly leading to volatility. Upcoming inflation data has the potential to be a determining factor as to whether the value of the asset rises or falls.