{"id":44679,"date":"2026-01-20T16:01:01","date_gmt":"2026-01-20T08:01:01","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=39602"},"modified":"2026-01-20T16:01:01","modified_gmt":"2026-01-20T08:01:01","slug":"dollar-slides-as-sell-america-trade-returns","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/dollar-slides-as-sell-america-trade-returns\/","title":{"rendered":"Dollar Slides as \u201cSell America\u201d Trade Returns"},"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\/image_fx_-2025-03-14T113836.526-1024x559.png\" alt=\"\" class=\"wp-image-18366\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>USDX falls as much as 0.3% to 98.841, its lowest since January 12.<\/li>\n\n\n\n<li>Renewed US tariff threats revive a broad \u201cSell America\u201d trade across markets.<\/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 US dollar retreated for a second consecutive session in Asian trading on Tuesday, extending its losses as investor confidence in US assets waned.<\/p>\n\n\n\n<p>The <strong>dollar index (USDX)<\/strong> slipped as much as <strong>0.3% to 98.841<\/strong>, marking its weakest level since <strong>January 12<\/strong>, as markets reacted to renewed tariff threats from the White House directed at European allies.<\/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\">The dollar faces fresh headwinds as President Trump weighs tariffs on European nations tied to his plan to acquire Greenland, raising uncertainties over US policies, according to analysts <a href=\"https:\/\/t.co\/oRRscRu1gG\">https:\/\/t.co\/oRRscRu1gG<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2013106168940400958?ref_src=twsrc%5Etfw\">January 19, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The move came after President <strong>Donald Trump<\/strong> warned of further tariffs linked to US efforts to secure control over <strong>Greenland<\/strong>, reigniting concerns over trade disruption, diplomatic strain, and policy unpredictability.<\/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\">State Street&#39;s chief executive says the US economy faces strong tailwinds despite market volatility triggered by President Trump\u2019s tariff threats <a href=\"https:\/\/t.co\/5WZwt0p3ce\">https:\/\/t.co\/5WZwt0p3ce<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2013517995264327977?ref_src=twsrc%5Etfw\">January 20, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The reaction echoed the sharp market selloff seen after last year\u2019s <strong>Liberation Day tariff announcement in April<\/strong>, when US stocks, Treasuries, and the dollar fell in tandem.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">\u201cSell America\u201d Narrative Gains Traction<\/h2>\n\n\n\n<p>Market participants responded by trimming exposure to US assets ahead of the reopening of Wall Street following the <strong>Martin Luther King Jr. Day<\/strong> holiday.<\/p>\n\n\n\n<p>According to IG analyst <strong>Tony Sycamore<\/strong>, traders are rotating away from the dollar amid fears of <strong>prolonged uncertainty, strained alliances, <a href=\"https:\/\/t.co\/0dSbnFx0Ge\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\">retaliation risks<\/a>, and accelerating de-dollarisation trends<\/strong>.<\/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\">Investors caught between fear of missing out on a further stock market rally and the building geopolitical risks can take a cue from strategists at the biggest Wall Street banks. <a href=\"https:\/\/t.co\/pzSd3bqYiv\">https:\/\/t.co\/pzSd3bqYiv<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2013023685590851655?ref_src=twsrc%5Etfw\">January 18, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>While hopes remain that tariff threats could be softened or delayed, the market is increasingly pricing in political risk as a structural factor rather than a temporary shock.<\/p>\n\n\n\n<p>The persistence of the Greenland issue as a national security objective has kept pressure on the greenback.<\/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) is under renewed pressure, with price falling to <strong>98.536<\/strong>, down <strong>0.30%<\/strong> on the session.<\/p>\n\n\n\n<p>The chart shows a clear downtrend across the 15-minute timeframe, with price consistently trading below the short-term moving averages (MA5, MA10, MA20, MA30), all of which are flattening and descending\u2014a sign of sustained bearish control.<\/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-17-1024x474.jpg\" alt=\"\" class=\"wp-image-39603\" \/><\/figure>\n\n\n\n<p>The intraday high of <strong>99.056<\/strong> now serves as a key resistance level, while near-term support may emerge around <strong>98.48<\/strong>, the current session\u2019s lower bound.<\/p>\n\n\n\n<p>Volume has increased during the latest selling wave, lending some weight to the downward momentum. Unless buyers step in decisively above the <strong>98.70\u201398.75<\/strong> band to reclaim short-term moving averages, the path of least resistance remains to the downside.<\/p>\n\n\n\n<p>The MACD appears poised for further divergence, suggesting continued bearish momentum in the near term.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Near-Term Outlook for USDX<\/h2>\n\n\n\n<p>Technically, the slide toward the <strong>98.80\u201398.60<\/strong> zone places the dollar at risk of deeper consolidation if political uncertainty persists. Any rebound would likely require a clear de-escalation in tariff rhetoric or renewed support from US economic data.<\/p>\n\n\n\n<p>In the near term, the dollar\u2019s path remains vulnerable to headline risk, with markets increasingly sensitive to policy credibility and geopolitical alignment rather than rate expectations alone.<\/p>\n\n\n\n<p><strong>Learn more about trading <a href=\"https:\/\/www.vtmarkets.com\/indices\" target=\"_blank\" rel=\"noopener\" title=\"\">Indices<\/a> on <a href=\"https:\/\/www.vtmarkets.com\/trade-now\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets<\/a> today.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The dollar weakens as tariff threats revive market fears and trigger broad selling across US assets.<\/p>\n","protected":false},"author":64,"featured_media":18366,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[9,11],"class_list":["post-44679","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\/44679","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=44679"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/44679\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/18366"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=44679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=44679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=44679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}