Dollar steady as markets weigh tariffs risks and await Fed minutes

9 July 2025

Today’s markets analysis on behalf of Konstantinos Chrysikos Head of Customer Relationship Management at Kudotrade

The US dollar held steady on Wednesday as investors digested the latest tariff actions and awaited fresh monetary policy signals. President Donald Trump announced tariffs on several countries, in addition to a 50% tariff on copper imports. However, traders could remain cautious as they face Trump’s ambiguity regarding the tariff deadline, which he described as “firm, but not 100% firm.” The market could remain exposed to any changes and developments around trade policy and could see more volatility in the case of a surprise.

Despite the heightened rhetoric, market reaction remained measured. Investors appeared to discount the immediacy of the threats, focusing instead on the broader trajectory of US monetary policy. The yield on the 10-year Treasury bond held near 4.4% as market focus shifted to the release of the FOMC minutes for further clarity on the Fed’s stance amid evolving trade dynamics. Market expectations could change as markets react to new economic data releases and comments from Fed members.

 

Zaid Barem / ymm