Dollar Steady as Markets Digest New Tariff Moves
The US dollar index held firm around 97.8 on Monday, maintaining its recent gains as investors assessed the latest developments in global trade.
President Trump announced a 30% tariff on imports from the EU and Mexico, set to take effect on August 1, further escalating trade tensions. In response, EU and Mexican officials signaled their willingness to continue negotiations with Washington this month in hopes of securing a lower rate.
Meanwhile, the EU is reportedly intensifying talks with other countries hit by US tariffs, including Canada and Japan, as it considers possible coordinated responses.
Market participants also grew cautious ahead of a key US inflation report due later this week, which may provide further insight into the broader economic impact of the new tariffs.
On the policy front, economic adviser Kevin Hassett drew attention after stating that President Trump "can fire" Fed Chair Powell “if there’s cause,” adding another layer of uncertainty to the outlook.
Source: Trading Economics
