Dollar Holds Steady After Tariff Relief
The dollar index remained stable at approximately 102.8 on Thursday following a significant intraday rally the previous day. This stability came as President Trump declared a 90-day suspension on reciprocal tariffs for nations that have yet to impose countermeasures. This decision offers key US trading partners a negotiation avenue amid an increasingly uncertain economic forecast. Nonetheless, Trump has increased tariffs on Chinese imports to 125% as a reaction to Beijing's retaliatory actions. Meanwhile, the European Union, which has introduced its own countermeasures, might not benefit from this tariff suspension. Although this temporary halt on tariffs provides short-term market sentiment support, investors continue to be cautious about the overarching effects of Trump's economic strategies, particularly concerning their potential influence on economic growth and inflation. As markets move forward, attention is centered on the upcoming US inflation data, which could shed light on the Federal Reserve's policy direction and the overall economic outlook.
The material has been provided by - RobotFX
No comments:
Post a Comment