USD Sliding
The US Dollar has come back under pressure today, reversing lower after a spike higher yesterday in response to news that a federal court ruled against Trump’s trade tariffs. Judges at the Court of International Trade ruled that Trump’s reciprocal trade tariffs were an overstepping of authority and should be blocked and abandoned. The White House has already lodged an appeal against the ruling and even if unsuccessful, Trump can still pursue the matter including taking it all the way as far as the Supreme court.
10 Days to Act
The court ruling has given Trump 10 days to reverse the tariffs and while focus has now shifted onto the White House’s appeal, if the order holds and the tariffs are reversed, this could see USD spike higher again along with a broader rally in risk sentiment. As such, traders will be keeping a close eye on incoming headlines around this issue with the prospect of heightened volatility now elevated over the next ten days.
US Data & Fed Speak
Looking ahead today, traders will also be focused on the latest weekly jobless claims as well as prelim US quarterly GDP. We’ll also have a slew of Fed speakers on deck through the afternoon meaning that USD could see plenty more movement today if we see any data surprises or hear anything meaningful from the Fed.
Technical Views
DXY
The rally off the 99.15 has seen the market coming back up against the bear channel highs and the 100.38 level. If price can break back above here, focus will turn to the 101.91 level next with 103.40 the higher level to monitor also.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.