- Friday, the US dollar index extends the gains to 100.86 before overthrowing the course.
- Trump floats 80% prices on Chinese products, urging China to save an economy with American products.
- The US dollar index seems to be set to test vital anterior resistance to 100.22 now for assistance.
The US dollar index (DXY), which follows the performance of the US dollar (USD) compared to six major currencies, quickly reverse the course this Friday before the UNITED STATES (United States) Trade discussions with China in Switzerland this weekend. The DXY index is negotiated nearly 100.45 at the time of the editorial staff after reaching a summit of almost a month of 100.86 earlier during the day. The Euphoria Trade Agreement on the United Kingdom (United Kingdom) with the United States is not at all considered a trade agreement. The United States can keep its 10% prices on British products while obtaining better and easier access to British consumer markets.
It is not at all a complete and complete agreement that US President Donald Trump has promised to approach the announcement. Such a bad deal is negotiated with one of the smallest countries in terms of exposure to the United States, and this opens the ground for commercial negotiations this weekend with China so as not to take place gently. Although President Trump, according to sources, said the prices could fall as low as 50% if China cooperates this weekend, it seems rather that the United States is not the strongest party sitting at the negotiation table, reports Bloomberg.
Daily Digest Market Movers: again on the prices
- As already mentioned, China and the United States will meet in Switzerland for commercial negotiations this weekend. However, no trade agreement would be discussed, but only defusing the situation. In addition to this, the Chinese Ministry of Commerce has reiterated several times this week that commercial talks can only take place if the United States unilaterally decreases its prices.
- Just before the American trade session, Trump commented the social network of truth that a price of 80% on Chinese products “ seems just '' while exhorting China to open its markets in the United States, before this weekend trade negotiations.
- A multitude of Fed speakers are aligned to speak this Friday:
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- At 12:30 p.m. GMT, the governor of the Federal Reserve Adriana Kugler and the president of the New York Fed John Williams deliver a speech on employment at the Reykjavik Economic Conference 2025 in Iceland.
- At 2:00 p.m. GMT, the president and chief executive officer of the Federal Reserve Bank of Chicago, Austan Goolsbee, shares the opening remarks of the Fed listening event, Midwest prospects, at the Federal Reserve Bank of Chicago.
- At 3.30 p.m. GMT, the governor of the Federal Reserve Christopher Waller participates in a round table on research on monetary policy at the Hoover monetary policy conference in Stanford.
- At 10:45 pm GMT, the governor of the Federal Reserve Lisa Cook, the president of the Federal Reserve Bank of Cleveland, Beth Hammack, and the president of St. Louis Fed, Alberto Musalem, participate in a round table on the dynamics of productivity during the conference on monetary policy Hoover in Stanford.
- The actions are in green on Friday, but not massively. European indices increased by 0.5% on average. American term contracts are stable to slightly higher, less than 0.5%.
- The CME Fedwatch tool shows the chances of a drop in the interest rate by the federal reserve at the June 17.1%meeting. Further on, the decision of July 30 sees the chances that the rates are lower than the current levels at 63.2%.
- American yields at 10 years are negotiating around 4.38%, again increasing up after diving in the middle of the week.
Technical analysis of the US dollar index: Look for the daily and weekly closure
THE US dollar The index (Dxy) broke a substantial resistance at 100.22 and begins to seem optimistic. However, there are a few questions, because the first trade agreement after the “Liberation Day” still sees the American rates in place. This means high prices for American consumers who wish to buy specific British goods, which could always feed a scenario of stagflationnaire.
Uplining, the first resistance of the DXY is 101.90, which acted as a pivot level throughout December 2023 and as a base for the reverse head and shoulder formation (H&S) during the summer of 2024. In case the dollars bulls take the even higher DXY, the simple 55 -day mobile average (SMA) at 102.47 comes into play.
On the other hand, the previous resistance at 100.22 should now act as a support. Support 97.73 could quickly be tested on any substantial bearish title. Further below, relatively thin technical support is available at 96.94 before looking at the lower levels of this new price range. It would be 95.25 and 94.56, which means fresh stockings that we have not seen since 2022.
US dollar index: daily graphic
FAQ prices
Prices are customs duties levied on certain imports of goods or in a product category. The prices are designed to help local producers and manufacturers be more competitive on the market by providing a price advantage compared to similar products that can be imported. Prices are widely used as protectionism tools, as well as commercial barriers and import quotas.
Although prices and taxes both generate government income to finance public goods and services, they have several distinctions. The prices are prepared for the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on taxpayers and individual companies, while prices are paid by importers.
There are two schools of thought among economists concerning the use of prices. While some argue that prices are necessary to protect national industries and approach commercial imbalances, others see them as a harmful tool that could potentially generate long-term prices and lead to harmful trade war by encouraging the tariffs of Tit-For-Tat.
During the presidential election in November 2024, Donald Trump clearly indicated that he intended to use prices to support the American economy and American producers. In 2024, Mexico, China and Canada represented 42% of the total American imports. During this period, Mexico stood out as the best exporter with $ 466.6 billion, according to US Census Bureau. Consequently, Trump wants to focus on these three nations during the taxation of prices. It also plans to use the income generated through prices to reduce individual income taxes.
