US Dollar Index Rises to 100.50 After Court Blocks Trump Tariffs, GDP Data Awaited

US Dollar Index Rises to 100.50 After Trump Tariff Ruling, Market Eyes Q1 GDP Data

May 29, 2025 – The US Dollar Index (DXY) extended its upward momentum on Thursday, rising over 0.50% to trade around 100.30 during the Asian session. The index, which tracks the performance of the US Dollar (USD) against a basket of six major currencies, is heading for its third consecutive day of gains, buoyed by favorable legal and policy developments.

Court Ruling Blocks Trump’s Tariffs

A key catalyst behind the dollar’s strength is a ruling issued on Wednesday by the US Court of International Trade in Manhattan. A three-judge panel blocked former President Donald Trump’s proposed “Liberation Day” tariffs from taking effect, declaring the move unconstitutional and beyond the authority of the presidency. The court's decision eased concerns over potential trade disruptions, providing support for risk sentiment and the USD.

FOMC Minutes Reinforce Fed's Cautious Tone

In addition to the legal decision, markets were influenced by the release of the Federal Open Market Committee’s (FOMC) latest meeting minutes. The minutes revealed that most Federal Reserve officials agreed that the current level of economic uncertainty warrants a wait-and-see approach to monetary policy. Policymakers expressed a consensus to keep interest rates unchanged for the time being, citing the unclear impact of recent policy shifts on the broader economy.

Upcoming Data in Focus

Looking ahead, traders are turning their attention to key US macroeconomic releases due later today, including:

• Q1 Gross Domestic Product (GDP) Annualized (expected: -0.3%)
• Personal Consumption Expenditures (PCE) Prices QoQ
• Initial Jobless Claims

These data points are expected to provide further clarity on the health of the US economy and could influence the Fed’s future policy direction. A weaker-than-expected GDP print might temper recent USD gains, while resilient consumption or low jobless claims could reinforce strength in the greenback.

Market Outlook

With rising global risk appetite, a supportive policy backdrop, and legal clarity removing tariff-related headwinds, the US Dollar Index appears well-positioned to maintain its current momentum—at least in the short term. Traders will be closely watching today’s data to assess whether this rally has more room to run.