Last Week Was Gloomy, This Week US Dollar Is Rampant!

thecekodok


The situation changed at the opening of the week yesterday when investors witnessed a significant strengthening of the US dollar for the first three sessions.


This was driven by the successful trade negotiation agreement between the United States (US) and the European Union (EU), thus supporting confidence in the US economy and the US dollar currency.


Although Europe is in a good situation after the successful negotiation, the Euro was pressured to fall due to the US dollar's dominance in the currency market.


US President Donald Trump and European Commission President Ursula von der Leyen agreed on the framework of a trade agreement on Sunday, where import tariffs on EU goods have been set at 15%, halved from 30% when Trump threatened earlier.


This follows the negotiation agreement reached with Japan, while US officials and Chinese officials in Stockholm on Monday are discussing extending the 90-day tariff truce.


Focusing on economic data, the JOLTS employment report will be watched in the New York session tonight to assess the number of job openings in the US in May.


In addition, the market will expect a major turbulence in the US dollar ahead of the release of NFP employment data along with the latest FOMC meeting.


Following the previously released US inflation data recording an increasing number, the market expects that the Federal Reserve (Fed) will still maintain its existing monetary policy, and is not yet in a hurry to cut interest rates.


The follow-up statement by Fed Chairman Jerome Powell will be a critical indicator for the market.


Will Powell's tone begin to change after Trump's visit to the Federal Reserve last week?

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