FX.co ★ Dollar Firms Ahead of Key Economic Reports

On Monday, the dollar index surpassed the 99.5 mark, building on last week's upward trend as investors braced for key economic data that might indicate the early effects of President Donald Trump's tariffs. The market's focus is on the anticipated April jobs report set for release on Friday, as well as the first-quarter GDP figures and the Federal Reserve's preferred PCE inflation measure coming on Wednesday. Should the data fall short of expectations, it could bolster the case for the Federal Reserve to consider earlier interest rate cuts. The previous week saw the dollar gain momentum following Trump's indication of a potential easing on Chinese tariffs, while China offered an exemption on certain US goods from its 125% tariffs. Moreover, market sentiment was steadied after Trump retracted his threat to dismiss Federal Reserve Chair Jerome Powell. Consequently, the dollar showed broad-based strength, appreciating against all major currencies.