The US Dollar (USD) weakened slightly on Monday (4/28) as markets kicked off a busy week, overshadowed by skepticism surrounding US trade policy. While US officials hinted at ongoing talks with Asian partners and "daily conversations" with China, Beijing reiterated that it was not engaged in negotiations, stressing the lack of winners in the tariff war. Against this backdrop, the US Dollar Index (DXY) traded slightly lower, around 99.33 at the time of writing.

Optimism that US trade policy could eventually ease global tariffs is increasingly being viewed as misplaced. Analysts at Standard Chartered noted that multilateralism has continued to weaken under the Trump administration, with the World Trade Organization (WTO) sidelined and free trade agreements (FTAs) facing a long and uncertain negotiation schedule. Adding to the pressure, the risk of prolonged uncertainty could weigh heavily on the global growth outlook.

Daily Market Movers Summary: Quiet Markets

US officials confirmed that tariff discussions with Asian countries are continuing, but China denied that there are active trade negotiations.

Standard Chartered warns that hopes for lower global tariffs are unrealistic; WTO mechanism still ruled out.

Chinese electronics retailers Temu and Shein raise prices by up to 300% for US consumers, highlighting the cost of tariffs.

Meanwhile, markets are gearing up for key US economic data later this week, including the first-quarter GDP reading and the April Nonfarm Payrolls (NFP) report.

Investors will be watching these releases for signs on whether the Federal Reserve (Fed) could move forward with a potential interest rate cut at its May 7 meeting. (Newsmaker23)

Source: FXstreet