Forex News: U.S. Dollar Rises As Traders Focus On U.S.

U.S. Dollar Rises As Traders Focus On U.S. Data, Trade Talks

(RTTNews) - The U.S. dollar strengthened against other major currencies in the European session on Tuesday, as traders awaited the outcome of ongoing U.S.-China talks in Stockholm, key U.S. economic indicators and upcoming Fed and BoJ rate decisions. Top economic officials from both nations held over five hours of negotiations on Monday to resolve longstanding economic disputes and lay the groundwork ahead of a leaders' summit in the autumn.

"I may go to China, but it would only be at the invitation of President Xi, which has been extended. Otherwise, no interest!" U.S. President Donald Trump said on Truth Social.

Days before the August 1 deadline, Trump also said that countries refusing to negotiate separate trade deals could face tariffs ranging from 15 percent to 20 percent, well above the 10 percent rate set in April.

Meanwhile, several European leaders voiced concerns over the EU-U.S. trade deal, calling it 'lopsided' and 'unsustainable'

While the US Fed is widely expected to leave interest rates unchanged, the announcement could impact the outlook for rates.

In the European trading today, the U.S. dollar rose to more than 1-month highs of 1.1528 against the euro and 0.8072 against the Swiss franc, from early lows of 1.1599 and 0.8025, respectively. If the greenback extends its uptrend, it is likely to find resistance around 1.14 against the euro and 0.82 against the franc.

Against the pound and the yen, the greenback advanced to more than a 2-month high of 1.3316 and nearly a 2-week high of 148.74 from early lows of 1.3360 and 148.16, respectively. The greenback may test resistance near 1.31 against the pound and 149.00 against the yen.

Against Australia, the New Zealand and the Canadian dollars, the greenback climbed to an 8-day high of 0.6499, a 1-week high of 0.5946 and nearly a 2-week high of 1.3761 from early lows of 0.6531, 0.5977 and 1.3731, respectively. The next possible upside target for the greenback is seen around 0.63 against the aussie, 0.58 against the kiwi and 1.39 against the loonie.

Looking ahead, U.S. goods trade balance for June, wholesale inventories for June, U.S. S&P/Case-Shiller home price for May, U.S. Consumer Board's consumer confidence for July and U.S. Dallas Fed services index for July are due to be released in the New York session.

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