Post #15859

DXY: Trade Policy Noise Meets a Strong Fundamental Backdrop Last week, the index briefly pushed into the 98 handle—a key area that could act as resistance. If DXY can break and hold above 98, it opens the door toward 100. If it fails, the move could fade back toward recent lows. On the policy front, Trump raised the new Section 122 tariffs to 15% over the weekend after the Supreme Court struck down the country-specific tariffs that had been implemented under IEEPA about 10 months ago. That said, he did not clarify whether this changes existing trade deals. Beyond the headlines, the fundamentals still lean supportive for the dollar versus major peers. EdgeFinder’s Eco Surprise Index has USD with the second-highest reading, signaling U.S. data is outperforming relative to most others. With inflation expectations easing last week and rates unchanged, USD still offers the strongest real-yield backdrop. - Alan