03.11.202501:35:53UTC+00Dollar Holds at 3-Month High

On Monday, the dollar index remained steady at approximately 99.8, maintaining its position near a three-month high. This stability comes as investors assess recent trade developments and anticipate pivotal economic data. Over the weekend, the White House announced significant trade advances: China agreed to halt additional export restrictions on rare earth minerals and ceased investigations into American semiconductor companies. In reciprocation, the U.S. decided to suspend certain tariffs and remove a proposed 100% levy on Chinese goods, an outcome resulting from the previous week's significant summit between President Trump and President Xi, aimed at reestablishing bilateral stability.

Additionally, the protracted U.S. government shutdown continued, causing delays in the publication of major economic reports, including the monthly employment figures. Despite these delays, investors are due to receive valuable insights from private-sector indicators due this week, such as ADP employment statistics, ISM Purchasing Managers' Indexes, and Michigan consumer sentiment data.

Moreover, the Federal Reserve last week implemented a widely anticipated 25 basis point interest rate reduction. However, Fed Chair Jerome Powell noted that a further rate cut in December remains uncertain.