US Dollar Rises on Trump’s Tariff Threats, DXY Nears Key Resistance Amid Growing Risk Aversion

US Dollar Rises on Trump’s Tariff Threats, DXY Nears Key Resistance Amid Growing Risk Aversion

Published: July 11, 2025
Category: Forex | US Economy | Trade

US Dollar Strengthens on Trade Tensions

The US Dollar gained momentum on Friday, buoyed by President Donald Trump’s announcement of new tariff threats, notably a 35% tariff on Canadian imports citing fentanyl concerns and trade imbalances. These moves have intensified global trade tensions, fostering increased risk aversion among investors.

Safe-Haven Demand Boosts DXY

Heightened uncertainty has driven investors toward safe-haven assets, lifting the US Dollar Index (DXY) to approximately 97.84, up by 0.20% for the day. The DXY remains below a critical technical resistance zone near 97.80–98.00, supported by the 9-day EMA at 97.50.

Market Outlook

The market is now cautiously awaiting upcoming economic data and Federal Reserve signals, with fading expectations of immediate interest rate cuts. The DXY’s near-term price action will likely hinge on these factors alongside evolving trade developments.

Key Factors to Watch:

• US Federal Reserve policy updates
• Progress in US-Canada trade negotiations
• Broader geopolitical developments
• Market risk sentiment and safe-haven flows

Related Articles on Tredu.com:

• Impact of Trump Tariffs on Forex Markets
• DXY Technical Analysis and Resistance Levels
• Safe-Haven Assets Performance Amid Trade Tensions