The US Dollar experienced a rise, with the dollar index surpassing 99.1, partially recovering from previous losses. This movement occurred as market participants closely watched global trade developments, specifically conflicting signals regarding US-China trade negotiations and potential agreements with other partners like India. Investors are also anticipating upcoming key economic data releases, including GDP, PCE inflation, and the jobs report, which could influence the Federal Reserve’s monetary policy outlook and potentially impact expectations for interest rate cuts.
- The dollar index rose above 99.1.
- China stated there are no active trade talks with the US and President Xi Jinping did not call President Trump.
- US Treasury Secretary Scott Bessent mentioned “very good” tariff proposals from top US trading partners.
- A trade agreement with India is potentially forthcoming.
- Investors are awaiting GDP, PCE inflation, and April jobs report.
- Softening economic data could strengthen expectations for Fed rate cuts.
This suggests the dollar’s performance is currently tied to both global trade dynamics and domestic economic data. Uncertainty surrounding US-China trade relations is counterbalanced by potentially positive developments with other trading partners. Furthermore, the dollar’s trajectory hinges on upcoming economic data releases, which will likely shape expectations for the Federal Reserve’s future monetary policy decisions and, consequently, the dollar’s relative strength.