American dollar in the face of another end -held loss on the development of a tariff war

The American dollar sees another leg lower on Tuesday, adding on Monday
Traders sell green after we put on tariffs, and in the meantime they already face counterattacks from Canada and China.
The American dollar index (DXY) does not find immediate support and can break even lower on Tuesday.

The American dollar index (DXY), which follows the results of the American dollar (USD) compared to the six main currencies, briefly broke below 106.00 on Tuesday after the President of the United States (USA) Donald Trump confirmed that the tariffs in Canada, Mexico and China were not delayed. Markets still doubted on Monday whether President Trump will still allow extending just before the deadline. No wonder the US was applied to the previously committed tariffs.

Meanwhile, Canada and China have already pushed the unilateral tariffs of the USA. Later on Monday evening, Prime Minister Canada Justin Trudeau announced a retaliation tariffs for American goods. “Canada will start from 25% of the US imports worth 30 billion C $ from Tuesday,” read a statement, while tariffs about other products of $ 125 billion will enter into force within 21 days.

At the beginning on Tuesday, China announced their own fee for American agricultural goods. The Chinese Ministry of Trade stated that it would impose additional tariffs up to 15% on the import of key agricultural products, including chicken, pork, soy and beef from the USA. The ministry stated that the tariffs will come into force on March 10.

Daily Digest Market Movers: Headers around

The United States Secretary Scott Bessent issued comments that the US rates will come back again and that he is convinced that Chinese producers will “eat” the tariff.
The last economic data in the US, while in the USA and the American dollar are developing, suggest that the US economy may go to a period of sluggish to negative growth, while inflation remains increased due to tariffs. Bloomberg informs that this is the perfect cocktail for recession or staglation phase in the American economy.
The economic optimism indicator of Technometryca Institute of Policy and Politics (TIPP) for March has fallen below 50 to 49.8, there are 53.1 estimates, compared to 52 in February.
Near 18:00 GMT, President of Richmond Bank Reserve Federal, Thomas Barkin gives a speech entitled “Inflation then and now” in the Regional Alliance in Fredericksburg, Fredericksburg in the United States.
Around 19:20 GMT, President of the Federal Reserve of New York, John Williams, is to take part in the discussion entitled “Careful Path of Stawki Cuts” at Bloomberg Invest 2025 in New York in the United States.
Actions are in the face of sales pressure around the world. A wide flight to sheltered parades is pushing salespayers in gold for now.
The CME Fedwatch tool designs 14.4% of the chance that interest rates will remain in the current range 4.25% -4.50% in June, and the others showed a possible reduction of rates.
The 10-year profitability in the US trads around 4.11%, more than last week by 4.574% and flirting with the lowest level five months.

American dollar index Technical analysis: Seismic shift

If there is one very clear thing now, both the profitability of us and the American dollar index (DXY) are not fans of tariffs. The risk is that more tariffs can hit all sides in retaliation, which can be even more reaching the American dollar when the stagflation scenario occurs. Thanks to the difference of crops between the USA and other countries, the green force would continue to erod, and DXY may even fall below 105.00 if the mood still increases in this direction.

On the other hand, a 100-day straight moving average (SMA) is the first resistance to observing any rejection, currently 106.87. In the event that DXY can interrupt over 107.35, the round level of 108.00 returns in the range, with 55-day SMA just below it.

On the other hand, the round level of 106.00 must maintain as support. In the event that this gigantic figure has slammed, 105.89 and 200-day SMA at 105.05 may begin to be identified as the next levels on the minus.

American dollar index: daily chart