- The US Dollar retraces its earlier gains, returning to a neutral position following remarks made by Treasury Secretary Bessent at the White House.
- The Trump administration characterizes Amazon’s decision to communicate the impact of tariffs on product pricing as a hostile act.
- The US Dollar Index remains constrained below the 100.00 psychological threshold, trading near 99.40 on Tuesday.
The US Dollar Index (DXY), which gauges the US Dollar’s (USD) strength against a basket of six major currencies, is exhibiting a volatile reaction in response to comments from US Treasury Secretary Scott Bessent and White House Press Secretary Karoline Leavitt. During a question and answer session at the White House, Leavitt intervened to address a question concerning Amazon’s plan to disclose the tariff impact on the prices of goods sold on its platform. According to a Bloomberg Television report, Representative Leavitt stated that she had just spoken with President Donald Trump, who views Amazon’s action as hostile and politically motivated. Concurrently, market participants expressed disappointment with Secretary Bessent’s indication that no immediate trade agreements would be announced, with potential deals requiring several more weeks to finalize. This uncertainty surrounding trade negotiations contributed to the dollar’s initial decline.
Turning to the economic calendar, Tuesday’s data releases are relatively light, with primary focus on the JOLTS Job Openings report for March. While this data is retrospective, predating the implementation of US tariffs, it could offer insights into whether US companies were anticipating potential impacts and adjusting their hiring activities accordingly. Economists were expecting a slight easing in job openings, reflecting a potentially cautious approach from businesses. Furthermore, the preliminary US Goods Trade Balance for March revealed a further widening of the deficit, signaling continued challenges in the trade sector. The trade deficit increased to -$91.8 billion, exceeding market expectations of -$90 billion and highlighting the ongoing imbalance between imports and exports. This data point adds to concerns about the overall health of the US economy and its vulnerability to external factors.
