According to data from Jinshi, the US dollar is heading towards its strongest single-week performance in nearly three years, continuing to rise after Trump imposed new tariffs on dozens of trade partners. Investors believe that the tariffs have not harmed the economy or driven up inflation.
Trump is pressuring Federal Reserve Chairman Powell to cut interest rates, but the Fed has indicated that it is not in a hurry to act. Strategist Chris Beauchamp points out that the non-farm payroll report may have limited impact, even if weak data triggers a sell-off in the dollar.
The fundamentals of the US economy are still decent, and the tariffs have caused only slight damage. The market may face selling pressure in the short term, but this is merely an excuse for funds to temporarily exit and observe. Unless extremely poor data emerges before September, it is difficult to rekindle expectations for interest rate cuts.