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Dollar Climbs Most Since May as US-EU Tariff Deal Fuels Trade Optimism
28 Jul
Summary
- Dollar gauge up nearly 1% as it extends July rally
- Traders await key data, Fed decision, and tech earnings
- Consumers spending softens as businesses brace for tariff costs
This past week, Wall Street kicked off a pivotal period with the US dollar climbing the most since May. The rally was fueled by a tariff deal between President Donald Trump and the European Union, which bolstered hopes for an extension of the China trade truce.
As the markets prepare for the crucial August 1st US tariff deadline, traders will be closely monitoring a raft of key economic data, from jobs and inflation to overall activity. The highlight of the week will be the Federal Reserve's policy decision on Wednesday, where the central bank is expected to keep interest rates unchanged.
Alongside the economic data, investors will also be closely watching the earnings reports from several tech giants, including four companies worth a combined $11.3 trillion. According to Piper Sandler's Chief Economist Nancy Lazar, consumer spending is currently going through a "soft patch" heading into the third quarter as businesses try to anticipate potential tariff cost increases.
