The dollar index (DXY00) is down by -0.20% and posted a 3-1/4 year low. The dollar remains under pressure on uncertainties over US trade policies with many nations trying to negotiate trade deals with the US before President Trump's July 9 deadline. Also, rising deficits are bearish for the dollar as the Congressional Budget Office estimates the measure would add nearly $3.3 trillion to US deficits over the next ten years. The dollar extended its losses after the June MNI Chicago PMI unexpectedly contracted by the most in 5 months.
Losses in the dollar are limited by signs of progress in trade negotiations with China and the EU. Also, trade talks are back on with Canada after it withdrew a digital services tax. In addition, Indian and Japanese trade negotiators extended their stay in the US this week to iron out trade deals.
