US Greenback’s (USD’s) rebound discovered momentum from a US court docket ruling, saying that Trump’s unilateral imposition of ‘Liberation Day tariffs’ below the Worldwide Emergency Financial Powers Act (IEEPA) is invalid. DXY was final at 99.93 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong notice.
2-way trades nonetheless seemingly within the close to time period
“The ruling additionally blocks the enforcement of fentanyl-related tariffs on China, Mexico, and Canada that have been introduced earlier this 12 months. In response, the Trump administration had filed a discover that it was interesting the ruling, and finally the US Supreme Courtroom could have the ultimate say. The court docket ruling helps to revive some credibility to the system which has been undermined by the unpredictability of Trump’s tariffs. “
“The test and stability system is not less than intact for now, offering a knee-jerk rebound for the USD whereas US futures jumped over 1%. Including to FX market volatility was BoK Governor Rhee’s feedback that Asian nations had forex talks with the US. This headline noticed some knee-jerk response, slowing USD’s advance towards Asian FX. Nonetheless, Rhee’s feedback alongside, uncertainty over the legitimacy of Trump’s tariffs could proceed to see extra 2-way value motion within the USD forward of core PCE knowledge (Friday).”
“Day by day momentum just isn’t exhibiting a transparent bias whereas RSI rose. 2-way trades nonetheless seemingly within the close to time period. Resistance at 100.80/101 ranges (50 DMA, 23.6% fibo retracement of 2025 peak to trough). Assist at 99.2 and 97.90 (2025 low).”
