Dollar Holds Advance on Trade Deal Boost
The US dollar index held firm above 98.6 on Tuesday, after rising 1% in the previous session, supported largely by euro weakness following a new US-EU trade agreement seen as favoring the US economy.
The deal, which imposes a headline 15% tariff on EU goods, drew sharp criticism from European leaders. France called the agreement unbalanced, while German Chancellor Merz warned it could cause significant harm to the German economy.
President Trump also reiterated on Monday that countries refusing to negotiate separate trade deals could face tariffs ranging from 15% to 20%, well above the 10% rate set in April. Meanwhile, the Federal Reserve is widely expected to keep interest rates unchanged at its policy meeting on Wednesday, though investors will be watching closely for signals of a possible rate cut in September.
Market participants are also awaiting key economic data this week, including the PCE inflation report and nonfarm payrolls, for further clues on the health of the US economy.
Source: Trading Economics
