- The US dollar index is quoted near the 100 -year area after briefly reaching a minimum of several years in response to new commercial tensions.
- Fed officials warned that tariffs could enliven inflation and weaken growth, while feeling data revealed a deep pessimism among consumers.
- The technical impulse is still bassist without support and resistance accumulating around the 102.30 area.
The American dollar index (DXY) continued to fall in Friday’s session, approaching the 100 zone after establishing a new minimum of three years earlier in the day. The downward trend reflects a general deterioration in investor confidence, since new data and comments from central banks paint a gloomy panorama for the United States economy (USA). The feeling index of the University of Michigan collapsed in April, while the production price index was below the forecasts, increasing disinflation concerns in the market. Several officials of the Federal Reserve (FED) pointed out the growing inflation expectations as a risk, even when short -term economic data suggests a deceleration demand.
Technically, the impulse is still strongly bassist as the DXY extends its recoil.
Daily summary of market movements: the US dollar falls through consumer pessimism and tariff repercussions
- The feeling indicator of the University of Michigan fell to 50.8 in April, while inflation expectations were shot at 6.7% for the perspective of one year.
- Williams of the Fed of New York and Collins of the Boston Fed warned about the risks of inflation related to trade and a probable deceleration in growth.
- The US Production Price Index increased by 2.7% year -on -year in March, falling from 3.2% in February, while the underlying rate was slowed to 3.3%.
- Unemployment applications increased to 223k, with continuous requests falling to 1.85m, pointing out mixed work dynamics.
- China confirmed retaliation tariffs on US imports, equalizing the increase in Washington to 125% and reviving recession concerns globally.
Technical analysis
The bearish tone remains dominant for the US dollar index, which is quoting around the 100 area, near the minimum of the session. The indicator of convergence/divergence of mobile socks (MACD) continues to issue a sales signal, while the relative force index (RSI) is located at 29.37, reflecting a weak but not overene impulse. The impulse (10) brand -3.303, confirming a continuous downward risk. All the main mobile socks – including the simple mobile average (SMA) of 20 days in 103.52, the 100 -day in 106.48, and the 200 -day in 104.79 – they pay for sale pressure. Resistance is expected at 102.29, 102.72 and 102.89, without significant support identified below the current range. The technical background suggests that the fall of the DXY may not have finished yet.
Commercial War between the US and China Faqs
In general terms, “Trade War” is a commercial war, an economic conflict between two or more countries due to the extreme protectionism of one of the parties. It implies the creation of commercial barriers, such as tariffs, which are in counterbarreras, increasing import costs and, therefore, the cost of life.
An economic conflict between the United States (USA) and China began in early 2018, when President Donald Trump established commercial barriers against China, claiming unfair commercial practices and theft of intellectual property by the Asian giant. China took retaliation measures, imposing tariffs on multiple American products, such as cars and soybeans. The tensions climbed until the two countries signed the Phase one trade agreement between the US and China in January 2020. The agreement required structural reforms and other changes in China’s economic and commercial regime and intended to restore stability and confidence between the two nations. Coronavirus pandemia diverted the attention of the conflict. However, it is worth mentioning that President Joe Biden, who took office after Trump, kept the tariffs and even added some additional encumbrances.
Donald Trump’s return to the White House as the 47th US president has unleashed a new wave of tensions between the two countries. During the 2024 election campaign, Trump promised to impose 60% tariff particularly in investment, and directly feeding the inflation of the consumer price index.
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.