DXY edges higher as markets digest Trump tariff threats, ISM data

The Dollar Index (DXY) ticked 0.1% higher to 104.65 as markets balanced President Trump's renewed tariff threats against disappointing US economic data. The ISM Manufacturing PMI fell to contractionary levels, while construction spending dropped unexpectedly. Despite the weak data, the dollar found support from safe-haven flows amid trade uncertainty. Asian markets showed mixed performance with the Shanghai Composite down 0.4%, while European indices traded flat. EUR/USD slipped 0.1% to 1.0830, while USD/JPY held steady at 156.80. The conflicting signals between protectionist policies and economic weakness create a challenging environment for traders. Technical analysis shows DXY testing resistance at 104.75, with support at 104.40. Market focus shifts to upcoming Non-Farm Payrolls data, which could provide clearer direction for dollar pairs amid the current uncertainty.