- DXY drowns with the escalation of the trade conflict in the United States and Canada.
- The United States for stocks declined, Dow Jones below more than 1 %.
- DXY decreases less than 103.50, with markets looking to more from the negative side.
The US dollar (DXY) is continuing a downward vortex on Tuesday, as DXY is near 103.40 with commercial tensions escalating. The President’s decision of the United States (United States) Donald Trump to raise the customs tariffs on Canadian steel and aluminum to a 50 % defeated market, adding more pressure on Greenback. Meanwhile, in Europe, the Green Alliance in Germany expressed its support for the defense spending bill, providing an additional payment to the euro (EUR). American stocks erase previous gains, as Dow Jones decreased by more than 1 %, reflecting the fears of the broader market.
Digest Market Mark: Commercial Conflict and Political Transformations
- The American commercial rift in the United States intensified with President Trump’s advance forward with a sharp increase in the tariffs on Canadian steel and aluminum, and reached 50 %.
- The Green German alliance has again confirmed its commitment to the Defense Anti -Defense Bill, which enhances the strength of the euro against the US dollar.
- The NFIB business optimism index decreased for February, reaching 100.7, to the bottom of 102.8 previous reading.
- The CME Fedwatch indicates that the prices will remain unchanged at the March 19 meeting, while the probability of reducing the rate in May has dramatically increased.
Technical expectations DXY: its lowest multiple levels as indicators indicating the sales conditions
The US dollar index (DXY) is drowned more, as it slipped below the level of 103.50 the key, which represents its lowest level since October 2024. The averages of simple movement last for 20 days and 100 days (SMA), which enhances the negative momentum. The RSI and MacD Relative Concerts indicate the excessive sale conditions, indicating a possible recovery in the short term. However, if support fails 103.30, the next negative goal is located near 103.00.
Customs fees are common questions
Customs duties are useful customs duties on some imports of goods or a category of products. Customs duties are designed to help local producers and manufacturers to be more competitive in the market by providing the price feature on similar goods that can be imported. Definitions are widely used as fever tools, along with commercial barriers and import shares.
Although customs tariffs and taxes generate government revenues to finance public goods and services, they have many differences. Customs duties are pre -paid in the entry port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while customs duties are paid by importers.
There is a school of thought between economists regarding the use of definitions. While some argue that definitions are necessary to protect local industries and address commercial imbalances, others see them as a harmful tool that can push prices up in the long term and lead to a harmful commercial war by encouraging customs tariffs.
During the period before the presidential elections in November 2024, Donald Trump explained that he intends to use the customs tariff to support the American economy and American producers. In 2024, Mexico, China and Canada accounted for 42 % of the total imports of the United States. During this period, Mexico emerged as the best source with $ 466.6 billion, according to the American Statistical Office. Thus, Trump wants to focus on these three countries when imposing definitions. It is also planned to use the revenues created by definitions to reduce personal income taxes.
