- The US Dollar Index is showing signs of strength, rebounding to approximately 99.75 in the early hours of European trading on Friday.
- Optimism surrounding potential US trade discussions with partner nations is providing a boost to the US Dollar.
- China is advocating for the removal of tariffs as a means to resolve the ongoing trade dispute.
The US Dollar Index (DXY), which tracks the USD’s performance against a group of six major global currencies, is climbing, approaching 99.75 in early European trading on Friday. This movement comes amid encouraging signs in discussions with key allies such as India, Japan, and South Korea. Market participants are awaiting the final release of the US Michigan Consumer Sentiment data, scheduled for later today.
US Treasury Secretary Scott Bessent has indicated that India is poised to be the first nation to conclude a bilateral trade agreement with the US, aiming to circumvent potential reciprocal tariffs imposed by the Trump administration on Indian goods. Japan’s economy minister, Ryosei Akazawa, is scheduled to engage in a second round of trade negotiations with Bessent in the coming week.
Concurrently, South Korea has expressed a desire for measured and structured dialogue with the US regarding trade matters, seeking to establish an agreement before the suspension of reciprocal tariffs concludes in July. Any indications of advancement in trade negotiations could bolster the US Dollar in the short term.
