FX.co ★ Dollar Holds Steady as Trade Developments Eyed

The US dollar index remained around 98.4 on Monday, maintaining its position after two successive weeks of gains, as market participants concentrated on significant trade and economic developments. Commerce Secretary Howard Lutnick reaffirmed August 1st as a firm deadline for countries to start paying tariffs, though he stressed that negotiations would persist until that date. Market watchers also anticipated the release of the June leading indicators, which provide insights into the broader economic outlook. On the policy side, Federal Reserve Governor Christopher Waller reiterated his support for a rate cut in July, citing a weakening labor market and minimal inflation risks. He minimized the inflationary effects of tariffs, describing them as temporary, and noted that there are no indications of rising inflation expectations, granting the Federal Reserve more leeway to ease monetary policy. Concurrently, the dollar experienced a slight dip against the yen following a historic defeat for Japan's ruling coalition in the upper house election, which has heightened political uncertainty.