🧾 US Dollar Update

Advisory Bazaar Info Services

💵 The US Dollar Index rose by 0.09% to 97.96 after President Donald Trump announced a 30% tariff on all European goods starting August 1 in a letter to the European Commission. Analysts view this as a negotiation tactic.

📊 Markets now await the June US inflation data (due Tuesday) for further clues on the Federal Reserve’s rate path.

🗣️ Austan Goolsbee, President of the Chicago Fed, warned that new tariffs could fuel inflation concerns, possibly causing the Fed to hold off on rate changes.

🌍 Other Currencies:

• The euro dropped to a 3-week low.

• The Mexican peso also weakened after Trump sent similar tariff letters to both EU and Mexico.

• In response, EU and Mexico condemned the move as unfair and disruptive. The EU will hold off on retaliatory tariffs until early August while encouraging talks.

🔍 Market response during Asian hours was muted, with only the euro reacting significantly. Markets seem less sensitive to Trump’s repeated tariff threats.

📈 Taylor Nugent, Senior Economist at National Australia Bank, commented that it’s hard to say whether this muted response reflects resilience or denial.

📌 Notably, the July 9 tariff deadline passed without any actual hikes, making it hard for markets to price in future tariff-related risks leading into August.