{"id":26069,"date":"2025-07-09T06:49:48","date_gmt":"2025-07-09T06:49:48","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=26069"},"modified":"2025-07-09T06:49:48","modified_gmt":"2025-07-09T06:49:48","slug":"dollar-holds-ground-as-trade-tensions-deepen","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/dollar-holds-ground-as-trade-tensions-deepen\/","title":{"rendered":"Dollar Holds Ground as Trade Tensions Deepen"},"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\/usd1-1024x559.png\" alt=\"\" class=\"wp-image-16968\"\/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>USDX rose to 97.602, nearing June highs after Trump\u2019s tariff threats on copper, semiconductors, and pharmaceuticals<\/li>\n\n\n\n<li>Copper futures spiked over 10% in the U.S., while global markets brace for August 1 trade deadline<\/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 continues to strengthen, trading at <strong>97.241<\/strong> at the time of writing, after reaching a session high of <strong>97.356<\/strong>. The broader <strong>USDX index<\/strong> climbed to <strong>97.602<\/strong>, its highest level since <strong>June 25<\/strong>, buoyed by President Trump\u2019s widening tariff net and hawkish rhetoric<\/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\">\u201cThe dollar has been a strong currency for the past 13 years, it\u2019s been generally increasing or rallying, or appreciating against other currencies both in nominal terms and real terms since 2001,\u201d Macquarie global FX &amp; interest rates strategist Thierry Wizman says. <a href=\"https:\/\/t.co\/2uE9iGUDow\">pic.twitter.com\/2uE9iGUDow<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1942238426696192266?ref_src=twsrc%5Etfw\">July 7, 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 biggest catalyst of the day came overnight when Trump announced a <a href=\"https:\/\/t.co\/oyq5wr0h6P\" target=\"_blank\" rel=\"noopener\" title=\"\">50% tariff on copper imports<\/a>, triggering a 10% rally in U.S. copper futures. The metal\u2014vital to electric vehicles, power infrastructure, and military equipment\u2014had already been under supply pressure globally.<\/p>\n\n\n\n<p>By contrast, copper prices fell in London and Shanghai, as traders anticipate logistical bottlenecks in rushing supply to the U.S. before the tariffs take effect. The move underscores how Trump\u2019s tariff strategy is sending ripples across both commodity and currency markets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Pharma and Semiconductor Sectors Targeted<\/h2>\n\n\n\n<p>Trump also warned of new <a href=\"https:\/\/t.co\/w6yGUUGxYL\" target=\"_blank\" rel=\"noopener\" title=\"\">tariffs on pharmaceuticals and semiconductors<\/a>, two sectors closely tied to East Asian exporters like Japan and South Korea. These nations face a deadline of August 1 to reach individual trade agreements\u2014or risk sweeping tariff hikes.<\/p>\n\n\n\n<p>While on Monday Trump suggested that the date was \u201cfirm, but not 100% firm,\u201d he reversed course Tuesday, stating \u201cno extensions will be granted.\u201d The hardening stance has unsettled markets, with Wall Street futures sliding 0.1% and the S&amp;P 500 cash index extending a 0.8% loss earlier in the week.<\/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 remains in a short-term consolidating phase just below recent highs near 97.47, after rallying from intraday lows around 96.79. The price is oscillating around the 30-period MA after briefly regaining momentum following a strong jobs report (~147k jobs added), which supported a brief bullish uptick. However, the rally faded as the MACD histogram flattened and the moving averages (5, 10, 30) began to converge, signaling a potential stall in upward momentum.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1154\" height=\"507\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/usdx0907.png\" alt=\"\" class=\"wp-image-26070\"\/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Dollar finds footing above 97.20 as bulls eye breakout zone, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>On the upside, a move above the 97.40\u201397.47 area will be key to restoring bullish technical structure. A breakout above that zone could pave the way to test 97.70 and even 98.00 in the absence of conflicting macro news.<\/p>\n\n\n\n<p>Conversely, a drop below support near 97.15\u201397.20, held multiple times today, would increase the likelihood of a retest of recent lows around 96.80 and potentially 96.50.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Create your live VT Markets account<\/a> and <a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*5vyjdn*_gcl_au*Njc1MzM0NjY0LjE3NTEzNTM4MTc.*_ga*MjA5ODA0NDIzNC4xNzI3OTE1ODQ1*_ga_J26NL1ZVX7*czE3NTE4NzkxMDYkbzMwOCRnMSR0MTc1MTg3OTExOCRqNDgkbDAkaDA.*_ga_6XQ8153GYW*czE3NTE4NzkxMDgkbzU3JGcxJHQxNzUxODc5MTE4JGo1MCRsMCRoMA..*_ga_BG6LYEHPX1*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMTgkajUwJGwwJGgw*_ga_J8BRGZSREX*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_7CG6454YR5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_69Z54R4H9N*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_CY2VCKFC3C*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_TXZ07R2C21*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_17TMGY9BBE*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_MWDVVSEVL5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_2QCC3S2748*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_E7D2PCX624*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_XJ4037XKK6*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_EJCVQDC7VT*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjYkajQyJGwwJGgw\" target=\"_blank\" rel=\"noopener\" title=\"\">start trading<\/a> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. dollar rose to a 2.5-week high as Trump announced new 50% tariffs on copper. Wall Street wavers, while Asia and Europe react to shifting trade timelines and currency momentum. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":16968,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[9,11],"class_list":["post-26069","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-ca\/wp-json\/wp\/v2\/posts\/26069","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=26069"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26069\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16968"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=26069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=26069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=26069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}