{"id":23084,"date":"2025-05-29T06:09:25","date_gmt":"2025-05-29T06:09:25","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=23084"},"modified":"2025-05-29T06:09:25","modified_gmt":"2025-05-29T06:09:25","slug":"usdx-rallies-to-1-week-high-after-tariff-ruling","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/usdx-rallies-to-1-week-high-after-tariff-ruling\/","title":{"rendered":"USDX Rallies to 1-Week High After Tariff Ruling"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/usd5-1024x559.png\" alt=\"\" class=\"wp-image-16972\"\/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The U.S. Dollar Index (USDX) climbed as high as <strong>100.396<\/strong> before consolidating around <strong>100.186<\/strong>.<\/li>\n\n\n\n<li>A federal court blocked Trump&#8217;s proposed &#8220;Liberation Day&#8221; tariffs, spurring a broad risk rally.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p>The U.S. Dollar Index advanced on Thursday, breaking above the key <strong>100.00<\/strong> threshold as traders reacted to news that a federal court had blocked President Trump&#8217;s sweeping new import tariffs. The ruling prompted a rally across equity futures and a rotation out of traditional safe-haven assets, including the Japanese yen and Swiss franc.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">If high tariffs and an appreciating yen mean the end of the carry trade, the US dollar will be the canary in the coal mine for all US assets. <a href=\"https:\/\/t.co\/UaKpv9Z8UN\">https:\/\/t.co\/UaKpv9Z8UN<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1927812248287768612?ref_src=twsrc%5Etfw\">May 28, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The dollar\u2019s gains came alongside a <strong>1.5% jump in S&amp;P 500 futures<\/strong>, reflecting a clear &#8220;risk-on&#8221; pivot. Investors rotated out of defensive positions as the threat of immediate tariff enforcement was removed, if only temporarily. U.S. Treasury yields also climbed, with the <strong><a href=\"https:\/\/t.co\/NKQ3qJrn9s\" target=\"_blank\" rel=\"noopener\" title=\"\">10-year yield<\/a><\/strong> rising 4.4 basis points to <strong>4.52%<\/strong>, and the <strong>2-year yield<\/strong> jumping 6 bps to <strong>4.05%<\/strong>. These moves further bolstered dollar demand as capital flowed into higher-yielding U.S. assets.<\/p>\n\n\n\n<p>Meanwhile, the <a href=\"https:\/\/www.reuters.com\/world\/us\/us-court-blocks-trumps-liberation-day-tariffs-2025-05-28\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Trump administration filed a notice of appeal<\/a> against the ruling, and analysts now expect the case to move quickly through the legal system, possibly reaching the Supreme Court. This looming uncertainty has not yet been fully priced in, leaving open the risk of a reversal should the appeal succeed.<\/p>\n\n\n\n<p>The ruling also introduces fresh questions about U.S. fiscal sustainability. Without the projected tariff revenues, budget pressure could intensify, especially with Trump\u2019s <a href=\"https:\/\/www.reuters.com\/world\/africa\/dollar-rallies-after-us-court-blocks-trumps-tariffs-2025-05-29\/\" target=\"_blank\" rel=\"noopener\" title=\"\">tax-cut-and-spend package<\/a> already projected to add <strong>$3.8 trillion<\/strong> to the national debt over the next decade. Traders are wary that such fiscal strain could begin to weigh on longer-dated Treasuries \u2014 and by extension, the dollar \u2014 if inflationary concerns resurface.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The US Dollar Index (USDX) rebounded from the <strong>96.844<\/strong> base on 28 May, with prices steadily trending upward to test <strong>100.396<\/strong> before consolidating. The uptrend was supported by the 30-period moving average, which held as dynamic support through much of the session. After peaking, USDX entered a narrow consolidation range just above <strong>100.00<\/strong>, with slight pullbacks capped by the rising 30-MA.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-34-1024x446.jpg\" alt=\"\" class=\"wp-image-23085\"\/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: USDX tests 100.40 peak after steady rally from 96.84; bullish momentum cooling but trend support holds, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>MACD momentum surged with a bullish crossover during the breakout, although the histogram is now flattening, suggesting fading momentum in the near term. With price still above the short-term MAs and holding above the 100 psychological level, the bulls may yet attempt another leg higher\u2014especially if 100.40 is cleared convincingly.<\/p>\n\n\n\n<p>Despite the dollar\u2019s rally, caution remains. The Trump administration has already <a href=\"https:\/\/www.reuters.com\/legal\/major-cases-involving-trump-before-us-supreme-court-2025-04-22\/\" target=\"_blank\" rel=\"noopener\" title=\"\">filed an appeal<\/a>, setting the stage for a prolonged legal process. Traders are watching closely for whether the Supreme Court will weigh in \u2014 a move that could inject volatility back into both currency and bond markets.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*1azgbap*_gcl_au*NjE5NTE3MjY4LjE3NDQ2MDA3NDI.*_ga*MTY4OTgwNTU5Mi4xNzM2NzQ2MTgy*_ga_J26NL1ZVX7*czE3NDQ5NDQ0NTYkbzEyMCRnMCR0MTc0NDk0NDQ1NiRqNjAkbDAkaDA.\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Greenback climbs to 100.396 as equities surge and haven demand fades following U.S. court decision. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":16972,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[9,11],"class_list":["post-23084","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-dollar","tag-indices"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/23084","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=23084"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/23084\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16972"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=23084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=23084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=23084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}