Dollar Rebounds After Trade Deal, Fed in Focus
The US dollar climbed to its highest in nearly a week, lifted by easing trade tensions after the newly announced tariff deal between the US and the EU. The agreement cuts tariffs on EU exports to 15%, down from the previously threatened 30%. The dollar also gained support from optimism that the US and China will extend their current trade truce, which is due to expire on August 12.
Markets are now turning their attention to the Federal Reserve’s policy decision later this week. While no change in interest rates is expected, investors will be watching closely for forward guidance and comments from Fed officials. A steady rate outlook signals resilience in the US economy, even amid external trade pressures.
A series of key US economic data releases is also in focus, including GDP growth, nonfarm payrolls, PCE inflation, and the ISM Manufacturing PMI. These reports are expected to offer a clearer picture of the US economic outlook, just as concerns over tariff impacts begin to ease.
Source: Newsmaker.id
