On Tuesday, the dollar index remained relatively stable at 97.6, following a significant rise of approximately 1.2% over the preceding two days. This stabilization came in the wake of President Trump's nomination of Kevin Warsh as the prospective Federal Reserve Chair and robust ISM Manufacturing PMI figures, which led to a delay in expectations for rapid federal funds rate cuts. Despite this, market forecasts still anticipate the Federal Reserve will reduce rates twice within the year, potentially targeting June and October.
However, the release of crucial labor market indicators, such as the JOLTS survey and the monthly employment report, will be postponed due to the ongoing partial shutdown of the US government. Meanwhile, House Republican leaders are poised to vote on Tuesday concerning a government funding proposal that has already secured Senate approval. In international trade developments, the United States and India have successfully negotiated a new trade agreement that aims to lower tariffs on mutual goods. The US dollar experienced its most notable depreciation against the Australian dollar, following the Reserve Bank of Australia's decision to increase borrowing rates.
