The US Dollar edged lower on Monday but remained near previous levels as caution continues ahead of a pivotal week for the US economy and global trade.
Investors are turning their focus to a series of high-impact economic indicators, including Wednesday’s CPI report, Thursday’s PPI and Friday’s consumer sentiment data, which could clarify whether inflationary pressures are rising under the weight of new tariffs.
Last Friday, the greenback briefly strengthened after the May payrolls report showed a 139,000 increase in jobs, above consensus estimates but slightly below April’s figure. Average hourly earnings rose 0.4% month-over-month, surprising to the upside and supporting the view that wage pressures remain elevated. Markets now see the first Federal Reserve rate cut likely in September.
On the trade front, sentiment improved slightly after President Trump announced that top US and Chinese officials would meet in London. Any sign of renewed cooperation could lend support to the dollar, while any setback could place selling pressure on the currency.
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