Dollar’s Week Begins on a Bright Note
The U.S. dollar kicked off the week looking a bit stronger, as traders squinted at a fresh wave of trade friction.
Weekend Surprise: A 25% Tariff on Steel & Aluminum
- President Trump slapped a 25% duty on all steel and aluminum imports.
- Trade wars could heat up again, rattling global markets and slowing growth.
This extra pressure has made the dollar more attractive as a safe haven, giving it a short‑term boost.
Treasury Yields Stay Calm Amid Anticipated Volatility
The 10‑year U.S. Treasury is hovering around 4.5%. Investors are bracing for a swing in the swing‑yields after the Fed Chair, Jerome Powell, speaks tomorrow.
- Hawkish comments could lift both the dollar and yields.
- Dovish remarks might do the opposite.
Market watchers also keep an eye on this week’s key data: CPI and retail sales. These numbers could tweak the dollar’s direction.
Eurozone Concerns Keep Dollar in the Lead
- Slow growth in the Eurozone is still a worry.
- Pending German elections add extra uncertainty.
- All this weighs on the euro, playing to the dollar’s advantage.
What’s Next?
Keep an eye on tomorrow’s Powell testimony and this week’s U.S. economic releases. They’ll be the real glue keeping the dollar’s momentum going.
