The US dollar faced volatility as new tariff measures were announced while investors awaited key economic data. The Federal Reserve is expected to keep interest rates unchanged, which may support the dollar. However, the recent 30% tariff imposed by President Trump on imports from the EU and Mexico adds pressure amid rising global trade tensions. Traders are closely monitoring developments ahead of the tariff deadline. Ten-year Treasury yields remain steady at 4.42% as inflation data is anticipated, with potential impacts on Fed expectations and dollar performance.
The US dollar was relatively volatile on Monday as investors weighed the latest tariff measures and awaited key economic data.
President Trump announced a 30% tariff on imports from the European Union and Mexico, effective August 1, further heightening global trade tensions.
Markets increasingly anticipate the Fed to maintain rates unchanged, which could put a floor under the dollar.
A hotter-than-expected CPI on Tuesday could revive speculation about a more hawkish Fed trajectory, potentially lifting yields further and limiting the dollar's downside potential.
Collection
[
|
...
]