FX.co ★ US Dollar Rebounds on Potential Trade Deal

The US dollar index surpassed the 100 mark on Thursday, maintaining its upward momentum from the previous session. This movement was fueled by encouraging news of progress in discussions between the United States and key trading partners, reinforcing the White House's intention to retract its proposed reciprocal tariff plan. The US and UK are expected to announce a trade agreement later today, which could serve as a framework for future deals with other major economic partners, especially in light of critical discussions with China scheduled for the weekend. Meanwhile, the Federal Reserve kept interest rates steady, though Chair Jerome Powell highlighted increased risks to both inflation and unemployment. He dismissed the idea of a preemptive rate decrease as a measure to mitigate potential economic impacts from President Trump's proposed tariffs. Notably, among the major currencies in the index, the US dollar lagged behind the Swedish krona after the Riksbank decided to maintain its rates, whereas the Bank of England is anticipated to implement a rate cut.