"The US dollar was resilient on Tuesday, with traders cautious ahead of a heavy macroeconomic calendar. The currency's resilience came as US markets reopen after the holiday, leaving attention on the ISM Manufacturing index due later today. Consensus points to a modest improvement to 49, which would nonetheless mark a sixth straight month below the 50 expansion threshold. Any upside surprise could reinforce the dollar by signalling economic resilience, while weaker data may add to pressure from mounting rate-cut expectations."
"Politics remains a source of noise. Debate over the Federal Reserve's independence has intensified after President Donald Trump's efforts to remove Governor Lisa Cook. While Treasury Secretary Scott Bessent underlined that the Fed "is and should be independent," he also criticized past mistakes. Such headlines have amplified concerns over the institution's credibility and could drive yields up. From a monetary policy perspective, investors remain focused on the Fed's next steps after recent dovish remarks from San Francisco Fed President Mary Daly."
US dollar remained resilient as markets reopened, with traders cautious ahead of a heavy macroeconomic calendar and attention on the ISM Manufacturing index. Consensus expects a modest improvement to 49, still below the 50 expansion threshold for a sixth month. Upside surprises could reinforce the dollar; weaker data would add pressure from rising rate-cut expectations. Political debate over Federal Reserve independence intensified after President Donald Trump's efforts to remove Governor Lisa Cook, and Treasury Secretary Scott Bessent said the Fed "is and should be independent" while criticizing past mistakes. Treasury yields rose, with the 10-year above 4.27%, and upcoming labour data will be decisive.
Read at London Business News | Londonlovesbusiness.com
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