FX.co ★ Dollar Rebounds after US-EU Deal, Fed Awaited

The US dollar index experienced an increase to 98 on Monday, marking its highest point in nearly a week. This uptick was bolstered by reduced trade tensions following the announcement of a new trade agreement between the US and the EU. Under the agreement, tariffs on EU exports to the US will be set at 15%, notably lower than the previously threatened 30% rate by President Trump. Additionally, US and Chinese officials are scheduled to convene today to address ongoing trade issues, with expectations of extending the current trade truce, which is due to expire on August 12. Attention is also shifting towards the Federal Reserve's upcoming monetary policy decision later this week, though analysts do not anticipate any adjustments to the federal funds rate. In the next several days, a series of pivotal economic indicators will be released, providing further insight into the state of the US economy. Among these are GDP growth figures, nonfarm payrolls data, PCE inflation reports, and the ISM Manufacturing PMI, during a period where concerns regarding the economic effects of tariffs seem to be diminishing.