US Dollar Rebounds as Trump Delays EU Tariffs

The US Dollar Index (DXY) has rebounded from multi-week lows near 98.70 to trade around 99.50-99.60, supported by improved US consumer confidence and optimism after President Trump delayed the proposed 50% tariffs on European Union imports. Despite the rebound, the DXY remains under pressure from persistent US fiscal concerns, including Moody’s downgrade of the US credit rating and potential deficit increases if Trump's 'One Big Beautiful Bill' passes the Senate. The Canadian Dollar (CAD) has continued to strengthen against the USD, aided by robust Canadian retail sales and inflation data, diminishing expectations for a Bank of Canada rate cut in June. The USD/CAD pair has dropped below the 1.3700 level as market sentiment now favors the Canadian currency. Market participants remain cautious about the broader outlook for the US Dollar, with key resistance for the DXY at 100.50. Overall, trade and fiscal developments remain in focus for both currencies.