US Dollar Index remains steady above 97.00 ahead of Purchasing Managers Index data

• US Dollar Index maintains its position as traders adopt caution ahead of PMI data due on Thursday.
• The Greenback could receive support from easing concerns on Fed's independence following recent comments from US Treasury Secretary Bessent.
• President Trump stated that the US will implement a straightforward, simple tariff ranging from 15% to 50%.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is holding ground after registering losses in the previous four successive days and trading around 97.20 during European hours on Thursday. Investors are likely awaiting the S&P US Global Purchasing Managers Index (PMI) data for July later in the day.

The Greenback could have drawn support from easing concerns over the Federal Reserve's (Fed) independence. US Treasury Secretary Scott Bessent said late Thursday that a nominee for the next Federal Reserve Chair is likely to be announced in December or January. Bessent emphasized that there is "no rush" to select a successor to current Fed Chair Jerome Powell. Markets are focused on next week's Federal Reserve meeting, where rates are expected to be kept on hold, with potential cuts anticipated in October.

US President Donald Trump spoke at an AI summit in Washington on Thursday, signalling that the upcoming tariffs are set to begin at a minimum rate of 15%, establishing a new baseline for levies ahead of the August 1 deadline. Trump added, "We will have a straight, simple tariff of anywhere between 15% and 50%." The remarks signal a shift toward a more aggressive tariff strategy targeting nearly all US trading partners, with exceptions made only for a limited number of countries with existing trade agreements.

The European Union (EU) and the United States (US) are closing in on a deal that would impose 15% tariffs on EU goods imported into the US, reported by the Financial Times on Wednesday. On Tuesday, US President Donald Trump announced a major tariff deal with Japan, which includes a 15% tariff on Japanese exports.

However, traders are likely to keep their eyes on prevailing threats of 15% to 50% tariffs on countries such as South Korea and India, which are still negotiating deals. Traders also await clarity on talks with China, with Treasury Secretary Bessent scheduled to meet Chinese officials in the week ahead.