"The dollar index traded within a narrow range on Thursday, as investors balanced escalating US-China trade tensions, prolonged domestic political uncertainty, and anticipation of fresh guidance from Federal Reserve officials. The US government shutdown continued, delaying critical data releases and complicating the Fed's ability to assess real-time economic conditions. Trade tensions remained at the forefront after President Donald Trump said the United States is "already in" a trade war"
"with China, while Treasury Secretary Scott Bessent hinted at the possibility of extending the existing rare-earth truce beyond three months. Investors are also bracing for a potential Trump-Xi meeting later this month in South Korea, though hopes for a breakthrough remain slim amid tit-for-tat sanctions and tariff threats, adding a layer of uncertainty for the dollar's short-term direction. Meanwhile, the Fed's latest Beige Book reported stagnant economic activity, modest wage"
The dollar remained rangebound as investors weighed escalating US-China trade tensions, a prolonged US government shutdown, and anticipated Federal Reserve guidance. The shutdown delayed key data releases and complicated the Fed's ability to assess current economic conditions. Trade rhetoric from President Donald Trump and hints from Treasury Secretary Scott Bessent about extending a rare-earth truce added geopolitical uncertainty. A potential Trump-Xi meeting in South Korea offered limited hopes for a breakthrough amid reciprocal sanctions and tariff threats. The Fed's Beige Book showed stagnant activity, modest wage growth, and muted hiring, while markets priced rate cuts and the 10-year yield hovered above 4%.
#us-china-trade-tensions #federal-reserve-policy #us-government-shutdown #dollar-and-treasury-yields
Read at London Business News | Londonlovesbusiness.com
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