The US Dollar Index (DXY), which measures the value of the US Dollar against a basket of currencies, struggles to hold onto gains following Wednesday’s inflation data.
The US Dollar (USD) starts the week a little firmer overall from Friday but well of its best overnight levels. Comments from President Trump over the weekend confirmed that reciprocal tariffs would be announced on steel and aluminum imports in the next few days.
Friday's relatively strong US job report numbers and the broadening of US tariffs are keeping the dollar supported. On the former, the jobs report has seen expectations of Federal Reserve easing this year pared back to just 35bp. Those Fed easing expectations could narrow even further this week.