The USD is lower as tariff wars escalate. Lower USD as sellers dump stocks, bonds. | Forexlive

The USD is lower as the trade war escalates with China adding 50% on top of 34% tariffs on US goods. US is charging 104% tariff on China goods. US stocks are lower. US yields are higher with the 10-year currently at 4.386% after the yield was as low as 3.86% on Friday. The yield is up 12.6 basis points. The US treasury will auction 10 year notes at 1 PM ET. It might be interesting to see what kind of foreign demand there will be. Yesterday the 3-year auction had a higher tail at 2.4 basis points (demand was not great).

Bessent is saying the China’s retalitory tariff is unfortunate and that it is a loser for them. Tariff talks with Vietnam will take place on Wednesday.

Meanwhile, Trump says that the US has a lot of countries wanting to make a deal. He said that the tariff situation is a good situation. He announced that he will be announcing tariffs on pharmaceuticals soon.

Actions have consequences.

The dollar is lower vs all the major currencies:

• EUR -0.81
• JPY -1.0%
• GBP-0.31%
• CHF -0.97%
• CAD -0.38%
• AUD -0.64%
• NZD -0.25%

The calendar is light with wholesale inventories scheduled to be released at 10 AM with expectations of 0.3% versus 0.8% last month.

Oil inventory data will be released at 10:30 AM. With crude oil inventories expected to rise by 1.421M barrels, distillates are expected to rise by 0.264M and gasoline inventories are expected to see a drawdown -1.513M .