The US dollar is bleeding with the markets that slaughter the bulls of the dollar on customs duties
- The US dollar sells on Tuesday afternoon, already on Monday
- Greenback merchants sell after we impose customs duties, 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) against six major currencies, penetrates the 106th floor 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: It does not excel for us
- 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 Technometric Institute of Politics and Politics is scheduled to return in March at 15:00 GMT. Expectations are that the feelings will rise to 53.1, up 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.
- The stocks seem to have already prices in the recent tariff headlines. There are no significant losses or gains to report, with little pressure in Europe. Futures for stocks in the United States are assigned for a positive start.
- 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 about 10 years by about 4.15 %, which is less than the highest level last week of 4.574 % and flirts with the lowest level in five months.
Technical analysis of the US dollar index: The bulls are bleeding
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
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.
