The US dollar remains stable as traders await tariff updates from Washington, impacting market sentiment and currency movements.
USD Consolidates as White House Signals Tariff Flexibility
USD remains stable while the market waits for information, on tariffs.
On Monday the US dollar remained steady as traders kept an eye out for updates, from the White House regarding tariff actions. Market sentiment was varied with the dollar edging amidst a slight improvement, in risk appetite.
US officials have hinted that the upcoming tariffs, in April might be more limited, in scope than initially anticipated. Certain industry-specific tariffs may be exempted; however, there is still uncertainty surrounding border levies that could impact trade with Mexico and Canada. This ambiguity has caused traders to exercise caution as they await information.
Stocks showed a reaction, at the beginning of the week. Seemed to be on a firmer footing compared to earlier days. C on the other hand seemed a bit cautious as uncertainties surrounding policy adjustments limited any movements, in dollar value. The US Dollar Index (referred to as DXY) encountered challenges in surpassing the resistance point at 104 while having support markers settled around 103.75 and 103.25 levels.
There hasn’t been a shift, in the outlook despite the recent temporary improvement in risky asset performance. The direction of the dollar will be determined by policy indications from Washington. Given the evolving global trade landscape traders are closely monitoring for any shifts, in US trade policies. How they could influence currency markets.
