The dollar rose against most major rivals on Tuesday as markets closely assess the ongoing US-China trade war. 

The Organization for Economic Co-operation and Development reduced its US GDP growth forecast to 1.6% in 2025, down from 2.2% in previous forecasts, and for growth to slow even further in 2026 to 1.5%.

Earlier US data showed job opportunities rose to 7.39 million in April from 7.2 in March, while analysts expected 7.11 million. 

Otherwise, White House Spokesperson Karoline Leavitt said US President Donald Trump will sign an executive order today to double tariffs on steel and aluminium imports from 25% to 50%. 

The dollar index rose 0.6% as of 20:35 GMT to 99.2, with a session-high at 99.3, and a low at 98.5.

Loonie

The Canadian dollar fell 0.1% against its US counterpart as of 20:57 GMT to $0.7288.

Aussie

The Australian dollar fell 0.5% against the US dollar to $0.6462.

Gold prices fell on Tuesday as the dollar rose against most major rivals while traders assess the trade war. 

The Organization for Economic Co-operation and Development reduced its US GDP growth forecast to 1.6% in 2025, down from 2.2% in previous forecasts, and for growth to slow even further in 2026 to 1.5%.

Earlier US data showed job opportunities rose to 7.39 million in April from 7.2 in March, while analysts expected 7.11 million. 

Otherwise, White House Spokesperson Karoline Leavitt said US President Donald Trump will sign an executive order today to double tariffs on steel and aluminium imports from 25% to 50%. 

Separately, the dollar index rose 0.6% as of 20:35 GMT to 99.2, with a session-high at 99.3, and a low at 98.5.

On trading, gold spot prices rose 0.6% as of 20:36 GMT to $3377.8 an ounce. 

US stock indices rose on Tuesday even after the Organization for Economic Co-operation and Development reduced its US GDP growth forecasts.

It now expects the US economy to grow by 1.6% in 2025, down from 2.2% in previous forecasts, and for growth to slow even further in 2026 to 1.5%.

Now investors await important US job opportunities data today, and the payrolls report on Friday.

On trading, Dow Jones rose 0.1% as of 15:51 GMT to 42,345 points, while S&P 500 added 0.2% to 5948 points, as NASDAQ added 0.5% to 19,354 points.

Palladium prices rose on Tuesday even as the dollar rallied against most major rivals, with the industrial metal boosted by supply disruption concerns as the Russia-Ukraine war deteriorated. 

China asserted its commitment to take all measures to defend its interests, while condemning US President Trump’s claim that China violated the Geneva trade agreement. 

Otherwise, US-EU tensions deteriorated even further as Trump vowed to increase steel tariffs to 50%, with Brussels warning that such a step would hurt trade talks. 

Following the peace talks, both Ukraine and Russia escalated the war heavily with one of the biggest drone battles so far, with a Russian high-speed bridge blown up above a passenger train, while Ukraine targeted nuclear-capable bombers in Siberia. 

Ukrainian President Zelensky said his defense minister will meet Russian officials for the second round of direct peace talks in Istanbul on Monday.

The first round led to a prisoner exchange but with no agreement on a ceasefire. 

Even as the talks are ongoing, nearly 7 people were killed and 69 injured after a Russian bridge was blown away, while Ukraine targeted nuclear-capable bombers over 4300 kilometers away from the frontline.

The attack was planned for over a year and a half now, and managed to hit 41 Russian fighter planes, with the losses estimated at $7 billion.

Zelensky praised the results, and pointed to the use of 117 drones in the attack independently. 

The Russian forces acknowledged the attack, which led to fires in multiple airports before being doused, with Russia sending 472 drones against Ukraine during the night. 

Otherwise, the dollar index rose 0.4% as of 15:36 GMT to 99.1, with a session-high at 99.3, and a low at 98.5.

On trading, palladium September futures rose 2.5% as of 15:36 GMT to $1018 an ounce.