- The US Dollar shows little movement as market participants await key US economic releases this week.
- Throughout the weekend, the Trump administration continued to mention trade discussions with China, while China refuted these assertions.
- The US Dollar Index continues to encounter resistance below the psychological threshold of 100.00.
The US Dollar Index (DXY), which measures the US Dollar’s (USD) value relative to a basket of six major currencies, is trading with minimal change on Monday, hovering just under the 100.00 level. Over the weekend, US Treasury Secretary Scott Bessent indicated that trade agreement talks with several nations in Asia are progressing, while US Agriculture Secretary Brooke Rollins stated that the Trump administration is in “daily communication” with China regarding tariffs.
However, China stated on Monday that it is not currently involved in trade negotiations with the US. The nation reaffirmed its stance that tariff-based trade conflicts benefit no one and that the US should engage in discussions based on mutual respect, according to Bloomberg. As a related development, retailers Temu and Shein have reportedly increased prices for US customers on their platforms by up to 300%, Reuters indicates.
Looking ahead, the economic calendar is filled with significant events this week. The forthcoming data releases are expected to provide insights into whether the Federal Reserve (Fed) will decide to lower interest rates at its upcoming policy meeting on May 7. The primary focus this week will be on Wednesday, with the initial estimate of US Gross Domestic Product (GDP) for the first quarter. Subsequently, on Friday, the US Employment report for April – featuring the closely watched Nonfarm Payrolls figure – will be the highlight to conclude the week.
