🗞️ Dollar Selling Dominates as Trump Tariff Uncertainty Weighs on Markets

🗞️ Dollar Selling Dominates as Trump Tariff Uncertainty Weighs on Markets

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🎯 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.

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🇺🇸 Confusion Around Trump Tariffs

• Feb 20: The U.S. Supreme Court ruled “reciprocal tariffs” unconstitutional.

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

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

👉 Policy uncertainty expanded
👉 “Sell America” sentiment spread in markets

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💱 FX Moves (Asia Session)

• USD/JPY: 155.07 → fell toward 154.00

• EUR/USD: 1.1784 → 1.1835

• GBP/USD: 1.3480 → 1.3533

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

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📉 Dollar Index (DXY)

• Friday close: 97.796

• Asia low: 97.355

• Current: 97.59 (−0.22%)

Selling pressure eased into London,
but upside remains capped.

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🌍 Geopolitical Risk

• Continued U.S.–Iran tensions

• Ongoing uncertainty in the Middle East

👉 Political risk is driving sentiment
👉 Markets are highly sensitive to fresh headlines

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📊 Today’s Key Economic Data

• 🇩🇪 Germany Ifo Business Climate (forecast: 88.3)

• 🇺🇸 U.S. Manufacturing New Orders

• 🇺🇸 U.S. Durable Goods (final)

• 🇲🇽 Mexico GDP (final)

However, political headlines may outweigh economic data today.

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🎙 Speaking Events

• BOE MPC Member Taylor

• Fed Governor Waller

• ECB President Lagarde

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

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📌 Current Market Structure

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🔎 Summary

✔ Dollar selling dominates at the start of the week
✔ Tariff confusion is the primary driver
✔ Geopolitical risks remain in play
✔ 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.