- The US dollar sees another leg less on Tuesday, adding to the Judiciary Day on Monday
- Greenback traders sell after the definition fees, and at the same time they are already facing counter -attacks from Canada and China.
- The US dollar index (DXY) does not find immediate support and can decrease until Tuesday.
The US dollar index (DXY), which tracks the performance of the US dollar (USD) for six main currencies, briefly briefly broke out to less than 106.00 on Tuesday, after US President Donald Trump confirmed that the customs tariff for Canada, Mexico and China were not late. The markets were still suspicious of Monday if President Trump would still allow the extension just before the deadline. However, it was not surprising that the United States imposed previously committed definitions.
Meanwhile, Canada and China have already pushed the American definitions unilaterally. Later on Monday night, Canadian Prime Minister Justin Trudeau announced a retaliatory tariff for American goods. “Canada will start with 25 % of the customs tariffs on US imports worth 30 billion Canadian dollars from Tuesday,” read the statement, while the tariff related to definitions on other products worth $ 125 billion of products will enter into force within 21 days.
Early on Tuesday, China announced its own tax on American agricultural goods. The Chinese Ministry of Commerce stated that it will impose an additional tariff of up to 15 % on imports of major agricultural products, including chicken, pork, soybeans, and beef from the United States. The ministry said that customs duties will be valid on March 10.
Daily Digest Market Movers: The main headlines everywhere
- The US Secretary of the United States, Scott Beesen, issued comments that the prices of the United States will return again and that he is confident that Chinese manufacturers will eat definitions.
- Modern American economic data, while American yield and US dollar are rolling, indicates that the American economy can turn to a period of slow negative growth while inflation is still high due to definitions. This is an ideal cocktail either for stagnation or stagnation in the American economy, according to Bloomberg reports.
- The economic optimism index at the Technometrics Institute of Politics and Politics decreased for March to less than 50 to 49.8, and lost 53.1, a decrease from 52 in February.
- Near 18:00 GMT, Thomas Parkin, President of the Federal Reserve Bank in Richmond, delivers a letter entitled “inflation at the time and now” in the Friedrixburg’s regional alliance in Frederkesburg, USA.
- Around 19:20 GMT, the President of the Federal Reserve in New York John Williams is scheduled to participate in a discussion entitled “Cautious Path to reduce prices” in Bloomberg 2025 investments in New York, the United States.
- Arrows face a sale pressure in all fields. A wide journey to safe haveiths pushes merchants to gold at the present time.
- The CME Fedwatch tool establishes a 14.4 % chance that interest rates in the current range of 4.25 % -4.50 % remain in June, where the rest showed a possible reduction in the rate.
- The return in the United States is traded for 10 years about 4.11 %, which is less than the highest level last week by 4.574 % and flirts with the lowest level in five months.
Technical analysis of the US dollar index: seismic shift
If there is one very clear thing now, it is that both the US yield and the US dollar index (DXY) are not admired by tariffs. The risk now is that more definitions can reach all aspects of revenge, which may reach the US dollar more with the start of the recession. As the differential differentiation between the United States and other countries is narrowed, Greenback will lead to more corrosion, and DXY has fallen to less than 105.00 if feelings continue in this direction.
On the upper side, the SMA is the first resistance to see any rejection, currently at 106.87. In the event that DXY 107.35 can break, the round level is 108.00 in the range, with SMA for 55 days below it directly.
On the negative side, the 106.00 level needs to keep as support. In the event of a large number stability, 105.89 and SMA can be determined for 200 days at 105.05 as the following levels on the negative side.
US dollar index: daily chart
Fed questions and answers
The monetary policy in the United States is formed by the Federal Reserve (Fed). The Federal Reserve has two states: to achieve price stability and enhance full employment. Its primary performance to achieve these goals is to adjust interest rates. When prices rise very quickly and inflation is 2 % higher than the Federal Reserve goal, it raises interest rates, which increases borrowing costs throughout the economy. This leads to the most powerful USD (USD) because it makes the United States a more attractive place for international investors to stop their money. When inflation decreases to less than 2 % or the unemployment rate is very high, the Federal Reserve may reduce interest rates to encourage borrowing, which weighs on the green back.
The Federal Reserve (Fed) holds eight political meetings annually, as the FOOC Open Market Committee (FOMC) evaluates economic conditions and takes monetary policy decisions. FOMC attends twelve officials of the Federal Reserve-the seven members of the Governor, the President of the Federal Reserve in New York, and four regional regional presidents, the remaining regional regional, who serve for one year on a roundabout.
In extreme situations, the Federal Reserve may resort to a policy called quantitative mitigation (QE). QE is the process that the Federal Reserve increases significantly from the flow of credit in a suspended financial system. It is a non -standard policy scale used during crises or when inflation is very low. The Federal Reserve’s favorite federal weapon was during the great financial crisis in 2008. It includes the printing of the Federal Reserve more than dollars and their use to buy high -quality bonds from financial institutions. QE usually weakens the US dollar.
The quantitative tightening (QT) is the reverse process of QE, as the Federal Reserve stops buying bonds from financial institutions and the manager does not re -invest from mature bonds, to buy new bonds. It is usually positive for the value of the US dollar.