US Dollar Weakens Ahead of New Tariff Deadline
The US dollar weakened on Friday (4/7) as market participants became increasingly concerned ahead of the end of the 90-day grace period for reciprocal tariffs which will fall on July 9. US President Donald Trump is reported to use the Independence Day holiday to sign a large tax and spending package that was previously passed by the House of Representatives. Concerns about the US fiscal deficit that continues to swell also weighed on market sentiment.
Although US labor data previously recorded positive results, investor focus has now shifted towards trade tensions. Trump has announced plans to send new tariff notification letters to his trading partners starting Friday. The dollar index (DXY) was recorded down 0.3% to 96.862, while Bitcoin also corrected 0.9% to $109.008 after touching a five-week high.
Meanwhile, the US stock market was closed for a national holiday, but Asian and European stock markets opened with mixed results. In Europe, major indexes such as the German DAX and the French CAC 40 fell, also triggered by the air traffic controller strike. In Asia, Japan's Nikkei index rose slightly, but South Korea's Hang Seng and Kospi recorded quite sharp declines. The market is now waiting for the direction of OPEC+ policy this weekend which will also affect global oil price movements.
Source: (ayu-newsmaker)
