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The moderation in labor demand may temper expectations for sustained economic expansion and could weigh on the Fed’s interest rate trajectory.
Still, the dollar remains supported, with the DXY maintaining its footing above 99.00. Anticipation around the PCE report later this week is providing near-term strength, as traders look for confirmation of disinflation trends or signs of renewed price pressures.
Trade Policy Signals Add to Market Uncertainty
In parallel, U.S.–China trade dynamics continue to shape sentiment. While President Donald Trump has indicated a willingness to ease tariffs, and Beijing recently removed some of its 125% duties on select U.S. goods, clear progress remains elusive.
A spokesperson for the Chinese embassy denied any active tariff negotiations, contradicting earlier optimism.
U.S. Treasury Secretary Scott Bessent emphasized that future talks depend on China’s willingness to engage. This lack of clarity has left markets wary, with trade policy uncertainty continuing to influence both economic outlooks and currency movements.
US Dollar Index (DXY) – Technical Analysis
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