FX.co ★ Dollar Rises as Market Sentiment Stabilizes

The US dollar index rose to nearly 99 on Tuesday, regaining some footing after Monday's losses, as market conditions showed signs of stabilizing despite lackluster economic data and escalating trade tensions. Recent figures revealed a sharper-than-anticipated contraction in US manufacturing activity for May, highlighting challenges from persisting trade uncertainties under the current administration. Trade tensions intensified when President Trump threatened to increase tariffs on steel imports to 50%, prompting strong objections from significant trading partners. Additionally, tensions with China worsened as Beijing dismissed Trump's accusations of breaching a temporary trade deal and vowed to take countermeasures to protect its interests. Nonetheless, the dollar saw gains, notably against currencies such as the yen, Australian dollar, and euro. Market participants are now focused on upcoming economic indicators, including data on job openings, durable goods orders, and factory orders, for more insights into the state of the US economy.