- The US dollar index settles about 106.40, and it hovers near its lowest levels in 2025.
- Traders expect price discounts, with the pricing of the federal reserves now in two discounts of 2025.
- US President Trump confirms 25 % definitions on Canada, Mexico and the European Union, but it delays the implementation until April.
- Markets are awaiting personal consumption expenses (PCE), the preferred inflation scale of the Federal Reserve, on Friday.
The US dollar index (DXY), which tracks the performance of the US dollar for a basket of six major currencies, is trying to have a modest recovery on Wednesday but is still near the lowest annual at 106.50. Traders continue in the weight of the increasing expectations of the Federal Reserve (Fed) and the latest developments in customs tariffs by US President Donald Trump.
Digest Market Mark: US dollar stability with high tariff tensions
- The US dollar proves about 106.40 as merchants who escalate the risks of tariffs and the increasing expectations for the reduction of the Federal Reserve.
- On the tariff front, President Trump confirms the definitions of 25 % on Canada, Mexico and the European Union, but delayed its implementation until April.
- On the Federal Reserve Front, markets are now expecting price discounts in 2025, which represents a shift from previous FBI’s guidelines.
- Merchants await personal consumption expenses on Friday (PCE), the preferred inflation scale of the Federal Reserve.
- Personal income and spending reports due this week may increase market expectations.
- The US GDP numbers in the United States Q4 will provide an insight into the momentum of the economy that is heading to 2025.
Technical expectations: Dxy: fights bulls for control
The US dollar index is trying to recover above 106.50, but the momentum is still fragile. The simple moving average is established for 100 days (SMA) at 106.60 main resistance levels, while continuing technical indicators in the homosexuality.
The RSI indicator (MACD) indicates the continuous negative side pressure. If DXY fails to restore 106.60, more decrease can be achieved about 106.00. The bulls need stronger stimuli to restore control, with the level of 107.00 as the next upper key barrier.
Common questions between the United States of China for war
In general, the trade war is an economic conflict between the two countries or more due to severe protectionism at one party. It involves the creation of commercial barriers, such as customs tariffs, which lead to anti -import barriers, and to import costs, and thus the cost of living.
The economic conflict between the United States (the United States) and China began in early 2018, when President Donald Trump laid commercial barriers on China, claiming unfair commercial practices and theft of intellectual property from the Asian giant. China has taken retaliatory measures and imposed a tariff on multiple American goods, such as cars and soybeans. Tensions escalated until the two countries signed the commercial deal for the first stage of the United States of China in January 2020. The agreement requires structural reforms and other changes on the economic and commercial system in China and demonstrated by restoring stability and confidence between the two countries. However, the Koronavus virus’s pandemic took the focus from the conflict. However, it should be noted that President Joe Biden, who took office after Trump, maintained the customs tariff in his place and added some additional fees.
Donald Trump’s return to the White House as an American president ignited 47 new waves of tensions between the two countries. During the 2024 election campaign, Trump pledged to impose 60 % of the customs tariff on China once he returns to his position, which he did on January 20, 2025. With the emergence of Trump, the American trade war and China aim to resume the place where it was left, with policies for corrections that affect global economic records in nutrition in nutrition.
