FX.co ★ Dollar Slips on Lingering Trade Concerns

The US dollar index fell below the 100 mark on Monday, reversing some of last week's gains as investors awaited more definitive insights into US-China trade relations. On Sunday, President Donald Trump reiterated his belief that China is interested in securing a trade agreement but did not provide any specifics or timeframe. Last week, Beijing indicated a willingness to consider trade negotiations, emphasizing, however, that the US must first eliminate all unilateral tariffs as a gesture of goodwill. Meanwhile, investor attention turned to the forthcoming Federal Reserve policy meeting, where it is broadly anticipated that the central bank will maintain interest rates at their current levels amidst ongoing trade uncertainties. Moreover, a stronger-than-expected April jobs report has diminished the probability of a June interest rate cut, bolstering expectations of a more hawkish stance from the Fed. Currently, markets estimate a 37% chance of a rate cut in June, a significant decrease from the 64% probability recorded a month ago.