DXY rebounds on tariff uncertainty, USD gains across majors

The Dollar Index (DXY) rebounded 0.4% to 105.20 during the week ended May 30, driven by legal uncertainty surrounding President Trump's reciprocal tariff powers. Conflicting court rulings have created volatility in currency markets as traders assess potential trade policy impacts. The dollar strengthened against major pairs, with EUR/USD falling 0.35% to 1.0780 and USD/JPY rising 0.5% to 157.40. Market participants are pricing in both the inflationary effects of potential tariffs and their impact on global trade flows. The legal whiplash has increased safe-haven demand for dollars, despite ongoing concerns about US fiscal deficits. Technical indicators show DXY breaking above its 50-day moving average at 105.00, with next resistance at 105.50. Traders should monitor further legal developments and any executive branch responses that could affect trade policy implementation.