US Dollar gives up ground after China's response on US tariffs
The US Dollar Index (DXY), which measures the value of the US Dollar against a basket of currencies, loses momentum on Tuesday after struggling to revisit the 110.00 level and declined below 108.00. Recent developments include President Trump's imposition of a 10% tariff on Chinese imports, while tariffs on Canadian and Mexican goods have been paused for 30 days following negotiations. Investors are concerned that these tariffs could contribute to inflationary pressure within the US economy.
Meanwhile, traders brace for Friday’s US Nonfarm Payrolls (NFP) data, which is expected to shape the Federal Reserve’s (Fed) monetary policy direction.
Source: FXstreet