United States Dollar Index gathers strength above 99.00 on US-Iran truce deal uncertainty
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.05 during the Asian trading hours on Monday. The DXY holds positive ground surrounding the US-Iran peace deal. The US ISM Manufacturing Purchasing Managers Index (PMI) report will be published later on Monday.
Iranian Foreign Minister Abbas Araghchi said on Sunday that talks and message exchanges with Washington were ongoing, but stressed that no assessment of negotiations could be made until a clear outcome was reached, per the BBC.
On Monday, US President Donald Trump requested that edits be made to the US-Iran deal aimed at bringing an end to fighting that began earlier this year, the BBC reported on Sunday. The changes are related to the Strait of Hormuz and the removal of highly enriched uranium.
The US employment data for May will be in the spotlight on Friday. Analysts expect the US Nonfarm Payrolls (NFP) to increase by 96K in May, and the US Unemployment Rate is projected to remain steady at 4.3% during the same period. If the report shows stronger-than-expected outcomes, this could support the DXY in the near term.
Traders are now pricing in nearly a 41.2% probability that the Fed will raise interest rates by 25 basis points (bps) by year-end, according to the CME FedWatch tool.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
US Treasury yields soar to a 24-year high; US Treasury advisors expect future declines as AI investments and energy shocks drive up borrowing costs
David Zervos, senior advisor to U.S. Treasury Secretary Yellen and a veteran Wall Street professional, stated on Thursday that despite the recent surge in U.S. Treasury yields to their highest levels in decades, the current real yields are significantly elevated compared to historical levels, suggesting room for a decline in the future.
St. Louis Fed President: Further rate hikes needed over the next 6 to 9 months; inflation remains the top issue for the US economy
St. Louis Federal Reserve President Musalem said on Thursday that the Federal Reserve still needs to raise interest rates further in order to bring U.S. inflation back to the 2% target in a timely manner.
Trump's tariffs increase U.S. consumer costs: New York Fed reports prices of related goods up nearly 3%, impact may last until 2027
The latest research by the Federal Reserve Bank of New York shows that the tariff policies implemented by U.S. President Trump have significantly increased the cost for American consumers to purchase everyday goods.
Overnight US Stocks | AI Performance Concerns Resurface, Nasdaq Falls Over 1%, Micron Technology (MU.US) Drops Over 4%
At the close, the Dow Jones Index rose by 52.61 points, or 0.10%, to 51,232.48 points; the S&P 500 Index fell by 36.35 points, or 0.47%, to 7,765.42 points; and the Nasdaq Composite Index dropped by 345.35 points, or 1.25%, to 27,193.34 points.
Crypto prices
More
