The dollar fell against most major rivals on Monday amid increasing concerns about a possible trade war once more between the US and other major economies. 

Canada cancelled the digital services tax aimed at US tech companies in an attempt to revive trade talks with the US.

The Canadian finance ministry said PM Mark Carney and US President Donald Trump will resume trade talks with an aim at reaching a deal by July 21.

US Trade Secretary Howard Lutnick thanked Canada for cancelling the tax, which would’ve tanked any potential trade deal with the US.

However, Trump threatened to increase tariffs on Japanese goods even further as both sides fail to reach a deal.

Later this week, the Senate will announce its decision on Trump's tax bill, while analysts also await the payrolls report later on Friday.

Otherwise, the dollar index fell 0.6% as of 20:51 GMT to 96.8, with a session-high at 97.3, and a low at 96.8.

Aussie

The Australian dollar rose 0.8% against its US counterpart as of 21:08 GMT to $0.6581.

Loonie

The Canadian dollar rose 0.4% as of 21:08 GMT against its US counterpart to $0.7342.

Gold prices rose on Monday as the dollar index fell against a basket of major rivals, with the precious metal marking the second quarterly profit in a row. 

Canada cancelled the digital services tax aimed at US tech companies in an attempt to revive trade talks with the US.

The Canadian finance ministry said PM Mark Carney and US President Donald Trump will resume trade talks with an aim at reaching a deal by July 21.

US Trade Secretary Howard Lutnick thanked Canada for cancelling the tax, which would’ve tanked any potential trade deal with the US.

Later this week, the Senate will announce its decision on Trump's tax bill, while analysts also await the payrolls report later on Friday.

Otherwise, the dollar index fell 0.6% as of 20:51 GMT to 96.8, with a session-high at 97.3, and a low at 96.8.

Gold spot prices rose 1% to $3319.8 an ounce as of 20:51 GMT, with a monthly loss of 0.2%, and a quarterly profit of 4.2%.

US stock indices rose on Monday with both NASDAQ and S&P 500 marking fresh record highs, with Wall Street heading towards quarterly gains.

Canada cancelled the digital services tax aimed at US tech companies in an attempt to revive trade talks with the US.

The Canadian finance ministry said PM Mark Carney and US President Donald Trump will resume trade talks with an aim at reaching a deal by July 21.

US Trade Secretary Howard Lutnick thanked Canada for cancelling the tax, which would’ve tanked any potential trade deal with the US.

Later this week, the Senate will announce its decision on Trump's tax bill, while analysts also await the payrolls report later on Friday.

On trading, Dow Jones rose 0.3% as of 16:15 GMT, or 117 points to 43,942 points, while S&P 500 rose 0.2%, or 9 points to 6,182 points, as NASDAQ climbed 0.1%, or 27 points to 20,301 points. 

Palladium prices fell on Monday on profit-taking after marking huge profits in recent days.

The dollar index hit early 2022 lows amid increasing concerns about the Federal Reserve’s independence, hurting confidence in the US monetary system. 

A weaker dollar makes the greenback-denominated metals futures cheaper to holders of other currencies.

Investors interpreted Fed Chair Jerome Powell’s last week Congressional testimony as leaning cautious, after saying that rate cuts are likely if inflation doesn’t rise this summer in response to tariffs.

According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in July stood at 20%.

The odds of such a cut in September stood at a much better 93%.

Currently, markets await a spate of important US data this week, including the crucial payrolls report on Friday, which would impact market’s expectations for upcoming Fed moves. 

The dollar was pressured once more by renewed attacks by President Donald Trump against Powell, urging him to resign before the end of his term in May.

Trump also said he wants main interest rates down to 1% from the current 4.25-4.5%, adding he plans to replace Powell with someone much more interested in monetary easing.

Investors are also analyzing Trump’s new massive tax cut and spending bill, currently in the Senate, which is estimated to add $3.3 trillion to government debt in 10 years.

The dollar index fell 0.2% as of 15:57 GMT to 97.1, with a session-high at 97.3, and a low at 96.9.

Palladium futures fell 2.9% as of 15:58 GMT to $1118 an ounce.