The US Dollar experienced a brief rise following tariff threats by Trump but continued its downward trend into Monday. This reflects the re-evaluation of weak USD sentiment. The DXY index last recorded a level of 98.03, indicating ongoing currency weakness.

Trump’s threat included a 50% tariff on goods from the EU and a 25% tax on iPhones not made in America. These tariffs are planned for implementation by 9 July and could affect any smartphone maker, including Samsung. The proposed tariffs have contributed to uncertainty in policy and concerns over the US fiscal position.

Market Ambiguity And Trends

There is ambiguity over whether new tariffs will be additional or replace existing ones. Market trends show waning USD momentum with the daily RSI falling. Potential support levels are at 97.90 and 97.40, while resistance lies at points including 99.10 and 100.80.

The US market is closed for Memorial Day, impacting trading activities. Information on these movements involves risks and offers no buying or selling advice. It is essential to conduct independent research before making any financial decisions. All associated risks and costs remain with the individual.

While the US dollar saw a minor uptick following Trump’s tariff proposals, that lift proved unsustainable. The dollar weakened again as markets moved past the initial reaction. With the DXY index dipping towards 98.03, the broader pattern remains one of reduced momentum in dollar buying, likely driven by waning confidence and anxiety around fiscal sustainability.

Trump’s declarations—chiefly, his intent to impose a hefty 50% duty on EU-made goods and a 25% tax on foreign-produced iPhones—continue to generate doubt regarding future trade policies. If enacted as announced by 9 July, there’s potential for measurable exposure across major electronics producers. While the remarks are framed to appeal to manufacturing interests at home, the ripple effects are already visible. Investors and institutions are beginning to price in lower confidence over coherent trade governance.

Uncertainties In Tariff Implementation

What creates an extra layer of complexity is the unclear application of these tariffs—whether new levies will be stacked atop existing ones or supplant them. That uncertainty leaves no room for assumptions. We’ve observed the daily RSI bending lower, pointing to less energy behind recent movements. Based on current models, there appears to be a fading appetite for sustained long positions. Nearby support sits around 97.90 and then again at 97.40. We would watch those carefully, especially if fresh data or comments aggravate the sell-off. Resistance, by contrast, lines up more distantly near 99.10 and further out at 100.80—areas that may face seller pressure if price recovers temporarily.

The US market being closed for Memorial Day has suppressed liquidity, so thinner trading volumes could exaggerate intraday volatility. That doesn’t negate trend direction but does mean that reactive moves might be overstated. Without the full depth of order books, some price action cannot be trusted at face value. Anyone holding short-duration exposure or options linked to USD performance should factor these nuances in daily setups.

Given rising political noise and unresolved questions over both trade alignment and internal US fiscal policy, recent moves are not noise alone—they relay a sentiment shift already underway. The ongoing price drift implies this weakening trend may persist without a reversal catalyst. We’re not placing directional bets solely on headlines, but when historical behaviours and data-backed signals line up this clearly, it’s hard to ignore them.

It’s essential to adjust expectations. Full visibility on the policy timeline is missing, and short-term plays depending on clarity may suffer. Exposure management becomes paramount, especially over the next three weeks, with tariff deadlines looming and market depths thinner than usual. For now, the fundamentals suggest softness in the dollar is not yet fully exhausted. Proper review of risk-reward remains imperative.

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