{"id":19184,"date":"2025-03-25T03:08:37","date_gmt":"2025-03-25T03:08:37","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=19184"},"modified":"2025-03-25T03:08:37","modified_gmt":"2025-03-25T03:08:37","slug":"dollar-index-holds-near-3-week-high","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/dollar-index-holds-near-3-week-high\/","title":{"rendered":"Dollar Index Holds Near 3-Week High"},"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-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image_fx_-2025-03-25T110732.137-1024x559.png\" alt=\"\" class=\"wp-image-19185\" \/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Dollar index (USDX) trades around 104.3, its highest level in three weeks.<\/li>\n\n\n\n<li>U.S. services activity rebounds in March, but future business outlook dips.<\/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 <strong>U.S. dollar index (USDX)<\/strong> steadied around <strong>104.3<\/strong> on Tuesday, marking its <strong>highest level in three weeks<\/strong>, as stronger-than-expected <strong>U.S. services data<\/strong> buoyed the currency. The index peaked at <strong>104.106<\/strong> before pulling back slightly to <strong>103.976<\/strong>, reflecting renewed confidence in short-term U.S. resilience but also growing caution around future risks.<\/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\">\ud83d\udd0a <a href=\"https:\/\/twitter.com\/Breakingviews?ref_src=twsrc%5Etfw\">@Breakingviews<\/a>: Washington has sharpened the dollar and technology into powerful weapons. Now erstwhile allies fear they are targets. In The Big View podcast, Edward Fishman explains how economic interdependence is increasingly at odds with security <a href=\"https:\/\/t.co\/HCVsdvC564\">https:\/\/t.co\/HCVsdvC564<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1904246857703809117?ref_src=twsrc%5Etfw\">March 24, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Monday\u2019s data showed <strong>a rebound in U.S. business activity<\/strong>, with <strong>service-sector strength offsetting a further <\/strong><strong><a href=\"https:\/\/www.reuters.com\/markets\/us\/us-manufacturing-output-accelerates-february-2025-03-18\/\">contraction in manufacturing output<\/a><\/strong>. The improvement helped lift the dollar across the board, particularly against the <strong>yen<\/strong>, where the greenback saw its <strong>strongest relative gain<\/strong>.<\/p>\n\n\n\n<p>However, <strong><a href=\"https:\/\/thedailyeconomy.org\/article\/business-conditions-monthly-january-2025\/\">expectations for business activity<\/a><\/strong><strong> over the next year dropped sharply<\/strong>, now sitting at their <strong>second-lowest level since October 2022<\/strong>. According to survey respondents, sentiment was clouded by <strong>sluggish demand<\/strong>, <strong><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-03-21\/central-bankers-move-slowly-through-fog-of-trump-s-trade-wars\">uncertainty around trade policy<\/a><\/strong>, and the broader impact of a <strong>new wave of tariffs<\/strong> expected under the current U.S. administration.<\/p>\n\n\n\n<p>While recent comments from <strong>President Donald Trump<\/strong> helped calm some fears\u2014suggesting a more <strong>targeted approach to tariffs<\/strong> rather than blanket levies\u2014his renewed pledge to impose <strong><a href=\"https:\/\/www.cnbc.com\/2025\/03\/24\/trump-tariffs-autos-pharmaceuticals-sectoral-reciprocal.html\">tariffs on autos, pharmaceuticals, and more<\/a><\/strong> has left markets uneasy. Traders are still pricing in the <strong>possibility of sector-specific disruptions<\/strong>, which may influence investment flows and currency positioning in the weeks ahead.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The USDX (US Dollar Index) chart shows a breakout attempt above the <strong>104.00<\/strong> level, briefly hitting a high of <strong>104.106<\/strong> before consolidating. This comes after a recovery from a recent low of <strong>103.374<\/strong>, where the index found strong support. The price has since been trending upward within a tight range, with the <strong>moving averages (5,10,30)<\/strong> converging and flattening\u2014signaling market indecision near resistance.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image-28-1024x440.jpg\" alt=\"\" class=\"wp-image-19186\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: USDX stalls near 104.10 resistance as bullish momentum begins to cool, 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>The <strong>MACD<\/strong> indicator reflects a loss of bullish momentum, as the histogram fades and the MACD line appears to converge toward the signal line. Unless bulls reclaim strong momentum and push past the 104.10 zone decisively, the index may enter sideways consolidation or see a pullback toward support at <strong>103.80<\/strong> or <strong>103.61<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Consolidation Ahead of Trade Clarity<\/h2>\n\n\n\n<p>As the <strong>dollar index consolidates just below resistance<\/strong>, traders may hesitate to push the dollar further without clear updates on <strong><a href=\"https:\/\/finance.yahoo.com\/news\/live\/trump-tariffs-live-updates-canada-prime-minister-calls-for-snap-election-unveils-policies-to-protect-canadian-goods-and-businesses-191201114.html\">tariff implementation timelines<\/a><\/strong> or further <strong>economic data surprises<\/strong>. The rally could extend if upcoming trade policy proves more measured than feared, but any escalation\u2014particularly on auto imports or medical goods\u2014could dampen sentiment and trigger safe-haven moves.<\/p>\n\n\n\n<p>In the short term, the <strong>dollar is likely to trade within the 103.60\u2013104.20 range<\/strong>, with <strong>momentum mildly tilted to the upside<\/strong>, pending clarity on U.S. trade policy and broader global risk appetite.<\/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\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dollar index steady at 104.3 after US services rebound; traders eye tariff threats and softening business expectations. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":19185,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[9],"class_list":["post-19184","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-dollar"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/19184","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=19184"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/19184\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/19185"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=19184"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=19184"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=19184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}