- The US dollar holds more than 108.00, while merchants are waiting for the weekend tariffs.
- Trump threatens the customs tariffs by 100 % on the BRICS countries if it challenges the US dollar in world trade.
- PCE inflation data shows steady pressure, which enhances cautious federal reserve position.
- The US dollar index hovers near 108.50, which represents a new weekly rise.
The US dollar index (DXY), which measures the value of the US dollar against the currency basket, remains stable above 108.00 before the expected weekend of the World Trade Policy. With a tariff for Canada and Mexico, it is scheduled to enter on Saturday, the market is expected to fluctuate at the beginning of next week. In addition, during Friday’s session, press a second. Caroline Levitt repeated that the first of February would be the deadline for filming Canada and Mexico. In addition, the US governor confirmed the customs tariffs of Canada, Mexico, the tariff of 25 %, and China by 10 %
Meanwhile, President Trump repeated his position against the BRICS countries, which is trying to introduce a new currency for international trade, pledging to the harsh definitions in response. The issuance of inflation data in PC (PCE) has confirmed stable pressure, which enhances the expectations that the Federal Reserve (FED) will maintain a cautious approach to policy amendments.
Daily Digest Market Mows: US dollar companies where traders monitor trade and inflation data
- The US dollar remains constant as markets are waiting for a tariff for Canada and Mexico this week.
- President Trump warns of 100 % customs tariffs on Brexes if they try to create an alternative global currency.
- On the data front, PCE enlargement increased in December 0.2 % of MOM, while Core PCE increased by 0.3 %, both of which are in line with expectations.
- The Chicago Procurement Manager Index for January 39.5 came, and a little was expected slightly expected, but improved from 36.9 in December.
- The American personal income for December increased 0.4 %, while personal spending increased by 0.5 %, indicating the continued consumer flexibility.
- Regarding the expectations of the Federal Reserve, the CME FEDWATCH tool records an 80 % probability that the Federal Reserve maintains the current policy price in March without any amendments.
- The GDP model in Atlanta will be released, the GDP of GDP in Atlanta will estimate its initial growth in the first quarter, as US Treasury revenues higher and trading revenue for 10 years increased by about 4.50 %.
- Despite the concerns of customs tariffs, future contracts for American stocks indicate a positive opening, indicating that the risk appetite remains sound.
Technical expectations DXY: The dollar carries gains, but it faces major resistance
The US dollar index remains constant above 108.00, about to heal it at 108.35. The momentum indicators indicate a mixed look, with the presence of the RSI index (RSI) about 50 and average average rapprochement (MACD), which reflects cautious feelings.
If DXY extends to its recovery, the resistance is located near 108.50, while the negative support is seen about 107.80. While the upscale momentum remains restricted, any unexpected definitions during the weekend can lead to new fluctuations, which constitutes the path of the nearby US dollar.
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.
