State of the Market: the US dollar under the pressure of aggravation of trade relations

Since the end of yesterday, the US currency remains under pressure due to the intentions of the Trump administration to raise prices for steel and aluminum. This news has become a thunder out of the blue sky for the market, exacerbating fears of a trade war between the US and its partners. It is expected that the tariff for imported steel and aluminum in the US will be 25% and 10%, respectively. At the same time, these supplies will be quoted to support domestic producers.

The market is already awaiting a response from the US trade partners, which will undoubtedly trigger a review of trade relations. As a consequence, the US currency remains under pressure against safe haven assets and is restrainedly trading against commodity currencies.

The US dollar index remains at the opening level of the day, being consolidated below the main support of 90.50, while remaining in an uptrend.

Graph of the US dollar index. The current price is 90.20.

Hanzenko Anton