Dollar Cuts Gains
The dollar index rose as much as 107.5 before paring gains to settle at 106.6 on Tuesday, as traders digest Donald Trump's threats to raise tariffs. In posts to his Truth Social network, Trump stated he would impose an additional 10% tariff on all Chinese goods entering the US, as well as a 25% tariff on imports from Mexico and Canada.
The pledge sent the dollar higher and raised further concerns about global trade. Yesterday, the greenback depreciated about 0.6%, following Trump’s nomination of hedge fund manager Scott Bessent as Treasury Secretary, providing markets a sense of stability.
Meanwhile, traders await FOMC minutes release later in the day to try to assess the Fed's plans for the next meeting. PCE inflation data and the second GDP growth estimate are also due this week.
Source : Trading Economics