The US dollar rises with the thinking of traders in the additional customs duties imposed by President Trump

• The US dollar rose slightly on Wednesday.
• US President Donald Trump expanded the scope of definitions to include imports of drugs and electronic chips.
• The US dollar index (DXY) has recovered above 107.00 and is still looking for a trend this week.

The US dollar index (DXY), which tracks the performance of the US dollar (USD) for six main currencies, moves slowly up and recovers above the level of 107.00 on Wednesday, where traders see that DXY is in a good position among all addresses of definitions and geopolitical events. At night, US President Donald Trump said that the definitions of cars will be about 25%, and that the imports of drugs and electronic chips will be added to the same system by April. President Trump tried to turn attention from the unclean first day of negotiations between Russia and US officials on a peace agreement in Ukraine, where he attacked the latter and confirmed that the blame is on Ukraine for not reaching an agreement and that it is likely to be difficult to achieve this.

Regarding the economic agenda, attention is directed to the minutes of the Federal Open Market Committee (FOMC) from the FBI’s monetary policy meeting in January. The record may provide some support to the US dollar, which was declining due to the weak American returns. A militant report may raise American interest rates again, reduce opportunities or possibilities to reduce interest rates for 2025, and see US dollars stronger as a final result.

Daily market engines: decrease real estate mortgages

• The weekly mortgage requests decreased significantly this week, as it decreased by 6.6% compared to last week’s performance.
• Before facing the latest minutes of the Federal Open Market Committee, some data were issued on the American housing market.
  • Building permits in January increased to 1.483 million units, exceeding the estimate of 1.460 million and 1.482 million in December.
  • The beginnings of housing in January decreased to 1.366 million, which failed to meet the estimate of 1.4 million, coming from 1.499 million.
• At 19:00 GMT, the Federal Reserve will make his notes for the month of January. Any tendencies or tones that tend towards emphasis may be sufficient to push the expectations of reducing the current rates of 2025 back and may mean stronger US dollars in the result.
• The stocks do not go well today and all in the red region across Europe and the United States. The Shanghai Shinzen Index is an exception, as it closed 0.7% although Trump’s expansion of tariffs to include medicines and chips.
• The CME Fedwatch is a 53.5% chance that interest rates will remain unchanged at the current levels in June.
• The return on American bonds is trading for 10 years around 4.57%, which is the highest level for this week.

Technical analysis of the US dollar index: The Federal Reserve will be clear

The US dollar index (DXY) is barely moving against the background of expanding definitions by US President Donald Trump. The US dollar did not move almost because of this and only started to rise on Tuesday when it was concluded that the first day of the talks between Russia and US officials did not result in any results. With the Federal Reserve of January Diaries on Wednesday, this may be sufficient to move DXY in any direction.

On the upward side, the previous support at 107.35 is now strong resistance. The simple moving average should be restored for 55 days at 107.93 before recovering 108.00.

On the downward side, search for 106.52 (the highest level on April 16, 2024), 106.51 (simple moving average for 100 days), or even 105.89 (resistance in June 2024) as support levels. Where the RSI is shown in the daily chart a field for further decline, the simple moving average may be for 200 days at 104.96 possible results.

US dollar index: daily chart