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- DXY is hovering near the 103th area during the Wednesday session after it is briefly dipped on the Dovish Fed.
- The issuance of the federal reserve lectures and the suspension of a surprisingly, Trump tariffs stopped in the short term, but emphasized the long -term inflation fears.
- The price procedure remains less than the main moving averages; The resistance is built near 103.20, while immediate support is about 101.80.
the US dollar index (DXY) circulates around the 103th area during the Wednesday session, which settles a little after the last sale pressure, which took it to less than 102.00. Secondary bounce follows the issuance of March meetings in the Federal Reserve (Fed), where politicians informed “difficult differentials”, pointing to the risks of high inflation associated with a slower growth.
President Donald Trump’s sudden announcement added a 90 -day comment on most of the fuel tariffs to the market march, sending Dow Jones sharply up. However, the DXY declining technical file indicates that the recovery may face the opposite wind, with several Indicators Warning signs are still flashing.
Daily Digest Market Movers: Complication Dollaar Comns to Recovery after FED signs of caution
- FOMC minutes revealed a wide consensus to maintain fixed rates due to the risks of persistent inflation and uncertainty to install on trade and growth dynamics.
- Participants indicated that inflation could be more attached than expected, with the emergence of negative risks to the labor market and broader economic activity.
- Federal reserve officials have warned that the movement of inflation and employment support may be increasingly complicated if the tariff continues to distort expectations.
- President Trump announced an immediate comment of mutual definitions and 10 % for 90 days – by swimming China – with increased risks across stocks.
- Despite optimism, politics makers have weakened the forecast of GDP for the year 2025 and 2026, as the foundation line expectations in the Federal Reserve continued to ultimately price discounts.
Technical analysis
The US dollar index remains under pressure even while trying to build a floor near the 102nd area. The difference in moving average rapprochement (MACD) shows a signal signal, while the RSI is hovering about 40, which reflects a neutral tone. Supporting the Habboudi issue, the main moving averages such as 20 days (103.63), 100 days (106.53), and 200 days (104.81) simple moving averages continue in the direction. The SIA moving average for 10 days and SMA for 10 days, both of which are about 103.20-103.38, also the declining pressure. Resistance was found in 102.62, 103.21 and 103.38, while initial support is seen around 101.83. If this floor is broken, a deeper decline in the level of 100.00 can be revealed.
Common questions between the United States of China for war
In general, the trade war is an economic conflict between the two countries or more due to severe protectionism at one party. It involves the creation of commercial barriers, such as customs tariffs, which lead to anti -import barriers, and to import costs, and thus the cost of living.
The economic conflict between the United States (the United States) and China began in early 2018, when President Donald Trump laid commercial barriers on China, claiming unfair commercial practices and theft of intellectual property from the Asian giant. China has taken retaliatory measures and imposed a tariff on multiple American goods, such as cars and soybeans. Tensions escalated until the two countries signed the commercial deal for the first stage of the United States of China in January 2020. The agreement requires structural reforms and other changes on the economic and commercial system in China and demonstrated by restoring stability and confidence between the two countries. However, the Koronavus virus’s pandemic took the focus from the conflict. However, it should be noted that President Joe Biden, who took office after Trump, maintained the customs tariff in his place and added some additional fees.
Donald Trump’s return to the White House as an American president ignited 47 new waves of tensions between the two countries. During the 2024 election campaign, Trump pledged to impose 60 % of the customs tariff on China once he returns to his position, which he did on January 20, 2025. With the emergence of Trump, the American trade war and China aim to resume the place where it was left, with policies for corrections that affect global economic records in nutrition in nutrition.
