US Dollar holds steady ahead of key US GDP
US Dollar holds steady ahead of key US GDP, NFP releases, and geopolitical developments this week
- The US Dollar remains steady as traders brace for a pivotal week of key US economic data.
- Over the weekend, the Trump administration reaffirmed that trade discussions with China are ongoing, though China dismissed the US claims.
- Meanwhile, the US Dollar Index continues to struggle below the 100.00 psychological level, searching for clear direction.
The US Dollar Index (DXY), which measures the Greenback’s performance against a basket of six major currencies, is treading water near the 100.00 mark on Monday.
Over the weekend, US Treasury Secretary Scott Bessent stated that trade negotiations with several Asian countries are ongoing, while US Agriculture Secretary Brooke Rollins mentioned that the Trump administration is engaging in “daily conversations” with China regarding tariffs.
However, China countered on Monday, asserting that no trade negotiations are currently taking place with the US. According to Bloomberg, Chinese officials emphasized that there are no winners in a tariff-driven trade war and called for talks based on mutual respect. Adding to tensions, Reuters reported that retailers Temu and Shein raised their prices by up to 300% for US consumers as a consequence of these strained relations.
Looking ahead, the economic calendar is packed this week and will be pivotal for market direction. Traders will closely watch incoming data to gauge whether the Federal Reserve (Fed) might move toward an interest rate cut at its May 7 policy meeting. The spotlight will be on Wednesday’s release of the first estimate for Q1 US Gross Domestic Product (GDP), followed by Friday’s highly anticipated US Employment Report for April, featuring the critical Nonfarm Payrolls (NFP) figure.
