US Dollar Steady as Trump Hints at Possible Rate Cuts

The US Dollar is holding firm for a second day, supported by strong economic data and hopes for better trade deals. Weekly jobless claims and PMI numbers released Thursday were better than expected, easing fears of a recession.

The US Dollar Index (DXY) is now trading near 97.50, recovering from recent lows. Investors are cautious as they wait for the Federal Reserve’s policy decision next week and the August 1 tariff deadline.

Trump Pushes Fed on Rate Cuts

President Trump visited the Fed’s headquarters on Thursday—the first visit by a sitting president in 20 years. During the visit, he pressed Fed Chair Jerome Powell to cut interest rates, saying the central bank is “moving too slowly.”

On Friday, Trump said he had a “good meeting” with Powell and believes he “might be ready to cut rates.” This raised market expectations of a possible rate cut soon.

Still, most economists expect the Fed to keep rates steady next week, with any rate cut likely postponed until September.

Key Market Updates

• US durable goods orders fell 9.3% in June due to fewer aircraft purchases, but core orders rose 0.2%.
• The 10-year Treasury yield is stable at 4.39%, with markets pricing in two rate cuts by year-end.
• The US has signed five new trade deals and is still negotiating with the EU, South Korea, and India.
• Trump warned of higher tariffs (15%-50%) on countries that don’t open their markets to US products.

Technical Outlook

The DXY is climbing after finding support near 97.00. If it breaks above 97.80–98.00, it could rise toward 98.93. A close below 97.00 may bring more selling pressure.

The RSI is at 47, pointing to a mild recovery, though momentum remains weak.

Make money without lifting your fingers: Start using a world-class auto trading solution.

EightCap, your trusted Partner in CFDs, Cryptocurrencies and Stocks.