By Erik Boekel, Chief Commercial Officer, DHF Capital
July 24, 2025:
The US dollar was relatively flat on Thursday, hovering near three-week lows as concerns around trade tensions receded to a certain extent after the US-Japan deal. Attention could remain on the developments around the US-EU negotiations and the discussions with China. Trade Secretary Bessent signaled that the tariff truce with China could be extended past its August 12 deadline, potentially easing tensions.
However, President Trump’s upcoming visit to the Federal Reserve could leave markets on edge. Traders remain concerned about political interference in monetary policy, despite Bessent’s reassurances.
Meanwhile, Treasury yields rose modestly across the curve, with the 10-year benchmark edging up to 4.40%, as investors dial back expectations for imminent Fed rate cuts and risk appetite improves. Policymakers could remain cautious amid fears that tariffs could drive inflation higher.
Looking ahead, market focus shifts to today’s PMI releases and jobless claims, which may offer fresh clues about underlying economic momentum and the Fed’s policy path. Soft figures could fuel new selling pressure.