“`html
- The US Dollar Index gains ground as indications of reduced friction between the US and China surface.
- Returns on the benchmark US two-year and 10-year Treasury notes stay contained, hovering around 3.75% and 4.24%, respectively.
- The Federal Reserve (Fed) is observing a communications blackout period leading up to its May 7 Federal Open Market Committee (FOMC) meeting.
The US Dollar Index (DXY), which measures the USD’s value against a basket of six major currencies, extends its upward trend for a second day, trading around the 99.60 level during Monday’s Asian trading session. The US Dollar (USD) is bolstered by emerging signs of de-escalation in US-China relations.
Last Friday, China removed some US imports from its list of goods subject to 125% tariffs, boosting hopes that the protracted trade dispute between the world’s two leading economies could be drawing to a close. However, Reuters cited a Chinese embassy representative who refuted the existence of any tariff discussions, asserting, “China and the US are not engaged in any consultation or negotiation regarding tariffs.” The representative called on Washington to “refrain from generating uncertainty.”
The yields on the US two-year and 10-year Treasury notes are stable at 3.75% and 4.24%, respectively, on Monday, as market participants await important economic data releases this week, which are expected to provide insight into the early consequences of President Donald Trump’s tariffs.
“`
