US Dollar Rises on Trump’s Tariff Threats, DXY Nears Key Resistance Amid Growing Risk Aversion
By tredu.com • 7/11/2025
Tredu
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
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