Forex Top Team

Back to all insights

πŸ—žοΈ Dollar Selling Dominates as Trump Tariff Uncertainty Weighs on Markets

πŸ—žοΈ Dollar Selling Dominates as Trump Tariff Uncertainty Weighs on Markets

🎯 Today’s Focus

Uncertainty surrounding new Trump-era tariffs is driving broad dollar selling, with markets on alert for further headlines.

At the start of the week in Asia, the dollar weakened sharply.
The catalyst: a rapid policy escalation following a U.S. Supreme Court ruling.

πŸ‡ΊπŸ‡Έ Confusion Around Trump Tariffs

  • Feb 20: The U.S. Supreme Court ruled β€œreciprocal tariffs” unconstitutional.

  • Immediately after: President Trump invoked Section 122 of the Trade Act of 1974
    β†’ Announced a flat 10% tariff.

  • Feb 21: Via social media, he stated
    β†’ The 10% rate would be raised immediately to as much as 15%.

πŸ‘‰ Policy uncertainty expanded
πŸ‘‰ β€œSell America” sentiment spread in markets

πŸ’± FX Moves (Asia Session)

  • USD/JPY: 155.07 β†’ fell toward 154.00

  • EUR/USD: 1.1784 β†’ 1.1835

  • GBP/USD: 1.3480 β†’ 1.3533

Although markets stabilized somewhat later,
the dollar remains weaker compared to late last week.

πŸ“‰ Dollar Index (DXY)

  • Friday close: 97.796

  • Asia low: 97.355

  • Current: 97.59 (βˆ’0.22%)

Selling pressure eased into London,
but upside remains capped.

🌍 Geopolitical Risk

  • Continued U.S.–Iran tensions

  • Ongoing uncertainty in the Middle East

πŸ‘‰ Political risk is driving sentiment
πŸ‘‰ Markets are highly sensitive to fresh headlines

πŸ“Š Today’s Key Economic Data

  • πŸ‡©πŸ‡ͺ Germany Ifo Business Climate (forecast: 88.3)

  • πŸ‡ΊπŸ‡Έ U.S. Manufacturing New Orders

  • πŸ‡ΊπŸ‡Έ U.S. Durable Goods (final)

  • πŸ‡²πŸ‡½ Mexico GDP (final)

However, political headlines may outweigh economic data today.

πŸŽ™ Speaking Events

  • BOE MPC Member Taylor

  • Fed Governor Waller

  • ECB President Lagarde

Waller’s comments may be particularly influential for the dollar.

πŸ“Œ Current Market Structure

Factor Impact on USD
New tariff announcement ❌ Bearish USD
Policy uncertainty ❌ Bearish USD
Geopolitical risk β–³ Partial support
Awaiting U.S. data Neutral

πŸ”Ž Summary

βœ” Dollar selling dominates at the start of the week
βœ” Tariff confusion is the primary driver
βœ” Geopolitical risks remain in play
βœ” Markets are extremely sensitive to political headlines

Direction now depends heavily on policy developments.
New tariff comments or legal actions could move markets instantly.

For now, the short-term bias leans toward a nervous, headline-driven USD weakness.

More Insights