FX.co ★ Dollar Steady as Markets Digest New Tariff Moves

The US dollar index remained steady at approximately 97.8 on Monday, consolidating its recent upward momentum as investors evaluated the latest global trade developments. President Trump's announcement of a 30% tariff on imports from the EU and Mexico, slated to be implemented on August 1, has further intensified trade tensions. In reaction, officials from the EU and Mexico have expressed their readiness to engage in negotiations with Washington this month, aiming to potentially secure a reduced tariff rate. Concurrently, the EU is reportedly ramping up dialogues with other nations affected by US tariffs, such as Canada and Japan, considering possible coordinated retaliatory measures. Traders are also approaching the week with caution in anticipation of a significant US inflation report expected later, which could shed light on the broader economic ramifications of the new tariffs. On the policy side, economic adviser Kevin Hassett has stirred attention by suggesting that President Trump has the authority to "dismiss" Federal Reserve Chair Powell “if justified,” injecting further uncertainty into the economic landscape.