- The dollar index acquires traction, and reaches a new weekly level above 108.00 with the deterioration of the market feeling.
- Difficult goods in the United States disappointed, fell 2.2 % in December, and missed expectations of 0.8 %.
- Treasury Secretary Scott Payet has proposed the gradual definitions, but Trump pushed higher and united rates, investors.
- Consumer confidence in January decreased to 104.1 from 109.5 December, reflecting the increasing concerns about economic expectations.
The US dollar index (DXY), which measures the value of the US dollar against a basket of currencies, extended its gains on Tuesday, and uniformity above the level of 108.00 psychological. Market morale has been strained after renewing concerns about weak US economic definitions and data, including low -commodity orders expected and low consumer confidence. Despite these opposite winds, the DXY managed to keep it over its lowest levels, indicating some flexibility.
Mobers Daily Digest Market Movers: The US dollar gains despite the weak economic data
- Treasury Secretary Scott Payet suggested the additional definitions on all American imports, starting from 2.5 %, which led to a aversion to the risks in the market.
- President Trump faced Bessin’s proposal, calling for significantly high tariffs, which raises concern in global financial markets.
- The consumer confidence index in the conference council decreased to 104.1 in January from 109.5 in December, indicating the weakest feelings.
- Domestic goods orders decreased by 2.2 % in December, led by a 7.4 % decrease in transport equipment, which represents another economic setback.
- With the exception of the transfer, the new requests increased modestly by 0.3 %, providing limited optimism amid wider declines.
- Fears about the exaggerated artificial intelligence shares contributed to the mood of the cautious market, which limits the appetite of the risks and the benefit of the US dollar.
- Investors are now raising their eyes to the federal reserve decision on Wednesday, where the suspended is already priced.
Technical expectations: Flexibility above 108.00, the risk of correction remains
The dollar index showed flexibility by restoring levels exceeding 108.00, supported by the renewal of the safe demand. Technical indicators, however, draw a mixed image. While the relative strength index remains less than 50 years, it is hinting at twice the momentum, the MACD shows increasing flat rods, indicating the declining pressure.
On the bright side, ascending correction can extend if the descending movement becomes exaggerated. The instant resistance lies in 108.50, while failure to maintain 108.00 can see the DXY index support near 107.50.
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 Trump’s return, the trade war and the United States aims to resume the place where it was left, with its existence, the limit policies In exchange for Tat, which affects the global economic scene, amid unrest in global supply chains, which leads to a decrease in spending, especially investment, and direct nutrition in the inflation of the consumer price index.
