The dollar hovered near a three-month high on Monday, starting November on a firm footing as investors looked ahead to a dense week of US economic data that could influence the Federal Reserve’s policy outlook.
Yields were slightly higher, with the 10 year note holding above the 4% threshold.
The focus now turns to the ISM Manufacturing PMI due later today, expected to edge up slightly from 49.1 to 49.2, while Wednesday’s ISM Services survey is forecast to rise from 50 to 51.
Any signs of improvement in business activity could reinforce confidence in the US economy and lend further support to the dollar and yields.
Beyond data, investors will closely monitor speeches from several Fed officials throughout the week for hints on how policymakers interpret recent inflation and employment trends following last week’s cautious tone from Chair Jerome Powell.
On the geopolitical front, the dollar could also find support after the White House confirmed that China will suspend additional rare-earth export controls and end probes into US semiconductor firms, in exchange for Washington pausing certain tariffs. The move follows last week’s Trump-Xi summit, which marked a tentative step toward stabilizing trade relations.
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