The US dollar has found temporary stability following yesterday's decline, though trade policy uncertainty continues to weigh on sentiment. With only 36 days remaining until President Trump's trade deal deadline, markets remain anxious about potential outcomes. The greenback's recent weakness reflects ongoing concerns about policy incoherence and conflicting signals from the administration. Legal challenges to reciprocal tariffs add another layer of complexity, with court battles potentially impacting implementation timelines. The dollar index (DXY) is struggling to maintain confidence levels as traders await clearer direction on trade negotiations. Technical indicators suggest the currency remains vulnerable to further downside if trade headlines turn negative. Near-term support for major USD pairs depends heavily on this week's trade-related developments, with resistance building at recent highs as uncertainty caps any meaningful recovery attempts.
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