During today's Asian trading, the U.S. dollar rose against major currencies, while investors awaited key economic data and updates on U.S. trade policy.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.23% to 99.70. But it is on track for its largest monthly decline in over two years, shaken by U.S. policy uncertainty.
Despite a more conciliatory tone in U.S.-China relations last week, with signs of potential tariff reductions, doubts remain. While President Trump claims progress, Beijing denies active trade talks, and Treasury Secretary Scott Bessent offered no confirmation on Sunday. Investors are now focused on upcoming U.S. data, including first-quarter GDP, core PCE inflation, and Friday’s jobs report, which is expected to show slowing growth.
The Australian dollar hovered near $0.64, with markets fully pricing in a rate cut next month. The New Zealand dollar stayed just below $0.60. The Canadian dollar was steady ahead of Monday’s election, with little volatility expected.
The yen fell by 0.05% against the US dollar. The Bank of Japan will set policy on Thursday, with no changes anticipated. Attention will be on officials' economic outlooks, especially amid ongoing U.S.-Japan trade discussions.
In Europe, the euro remained stable as ECB policymakers leaned toward a modest rate cut in June, citing slowing inflation and weaker economic data. While uncertainty from U.S. tariffs persists, the ECB sees little risk of immediate retaliation from the EU, easing fears of entrenched inflation.
However, policymakers ruled out a larger, 50-basis-point cut for now, aiming to avoid spooking markets amid an increasingly unpredictable global outlook.