FX.co ★ Dollar Holds Steady Ahead of Fresh Tariffs

On Tuesday, the US dollar index remained steady at around 104, as investors adopted a wait-and-see approach in anticipation of President Donald Trump’s plans to introduce reciprocal tariffs. The economic outlook remains clouded by uncertainty over the breadth of these tariffs, with Trump indicating a potential blanket application to all countries, while some reports suggest he is advising his team to adopt a more assertive trade strategy. In terms of monetary policy, John Williams, President of the New York Federal Reserve, noted that he cannot forecast when the Federal Reserve might change interest rates. He highlighted the importance of maintaining the current rates "for some time" to allow for a thorough evaluation of upcoming economic data. Meanwhile, market participants are keeping a close eye on forthcoming labor market indicators, including Tuesday's job openings, the ADP employment report on Wednesday, and the comprehensive payrolls report on Friday. These reports may provide valuable insights into the Federal Reserve’s future interest rate adjustment strategies.