US Dollar softens amid trade doubts and cautious sentiment
The US Dollar (USD) weakens slightly on Monday as markets kick off a busy week, overshadowed by skepticism surrounding United States (US) trade policy.
While US officials hinted at ongoing talks with Asian partners and “daily conversations” with China, Beijing reiterated it is not engaged in negotiations, stressing the lack of winners in a tariff war. This backdrop left the US Dollar Index (DXY) trading modestly lower, around the 99.33 mark at the time of writing.
Optimism that US trade policies might eventually reduce global tariffs is increasingly seen as misplaced. Analysts from Standard Chartered note that multilateralism continues to weaken under the Trump administration, with the World Trade Organization (WTO) sidelined and free trade agreements (FTAs) facing long and uncertain negotiation timelines.
Adding to the pressure, the risk of prolonged uncertainty may weigh heavily on global growth prospects.
Source: Fxstreet