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U.S. Dollar Retreats As Traders Focus On Trump’s Tariff Threats: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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The American currency is under pressure as Trump threatened to impose tariffs on countries that opposed his plans to take control of Greenland.
U.S. Dollar Moves Lower As Traders React To Trump’s Greenland Tariff Threat
U.S. Dollar Index is losing ground as traders react to Trump’s threat to impose tariffs on countries that do not support his plan to take control of Greenland.
Currently, U.S. Dollar Index is trying to settle below the support at 98.85 – 99.00. In case this attempt is successful, U.S. Dollar Index will move towards the next support level, which is located in the 98.00 – 98.15 range.
EUR/USD Tests The 50 MA At 1.1645
EUR/USD rebounds as traders focus on the potential trade war between the U.S. and the EU. French President Macron indicated that France could request the activation of the anti-coercion instrument, the most powerful tool in the EU trade war toolbox. It remains to be seen whether other EU members support France.
A move above the 50 MA at 1.1645 will open the way to the test of the next resistance level at 1.1715 – 1.1730.
GBP/USD Moves Higher At The Start Of The Week
GBP/USD gains ground as traders react to geopolitical developments and focus on general weakness of the American currency.
In case GBP/USD climbs above the 50 MA at 1.3429, it will move towards the resistance at 1.3475 – 1.3490.
USD/CAD Retreats As Precious Metals Markets Rally
USD/CAD pulls back as traders focus on the strong rally in precious metals markets, which was triggered by Trump’s tariff threats. Other commodity-related currencies are also gaining ground in today’s trading session. It should be noted that higher-than-expected inflation data from Canada provided additional support to the Canadian dollar as traders bet on hawkish BoC.
If USD/CAD declines below the 1.3850 level, it will move towards the nearest support at 1.3815 – 1.3830.
USD/JPY Tests Resistance At 158.00 – 158.50
USD/JPY attempts to settle back above the resistance at 158.00 – 158.50 as traders ignore geopolitical developments and focus on the lack of positive catalysts for the Japanese yen.
A successful test of the resisstance at 158.00 – 158.50 will push USD/JPY towards recent highs near the 159.50 level.
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About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
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