US Dollar Index Rebounds Above 97.50 as Trump Unleashes New Tariffs

US Dollar Index Rebounds Above 97.50 as Trump Unleashes New Tariffs

Published: July 11, 2025
Category: Currencies | Market News

DXY Supported by Tariffs and Strong Jobless Data

The US Dollar Index (DXY) rebounded to 97.80 during early Asian trading on Friday, recovering ground after US President Donald Trump unveiled a 35% tariff on Canadian imports, effective August 1. This fresh tariff move, combined with solid US labor data, helped lift the USD against a basket of global currencies.

Trump Targets Canada with 35% Tariff

On Thursday evening, Trump announced sweeping trade actions including a 35% duty on Canadian goods. He emphasized that the measure is independent of sectoral tariffs and warned that additional increases could follow if Canada retaliates.

The US President also revealed plans to notify remaining trading partners, including the European Union, of impending tariff hikes — 15% to 20% — unless trade deals are finalized by August 1.

Jobless Claims Provide USD Support

Further supporting the dollar’s gains was the latest data from the US Department of Labor, which showed Initial Jobless Claims dropped to 227,000 in the week ending July 5, marking a seven-week low and undercutting the forecast of 235,000.

The data reinforces market expectations of a resilient US labor market, potentially limiting the scope for aggressive Fed rate cuts, and thus boosting USD attractiveness.

DXY Performance Highlights:

• Current Level: 97.78
• Support Zone: 97.50
• Resistance: 98.00
• Bias: Bullish on trade and macro data