USD faces pressure as Trump announces new tariff plans for July 7
The US dollar index declined 0.2% in early Asian trading following President Trump's announcement of new tariff measures set to begin July 7. Trump stated that tariff letters and deals will be delivered starting at 12:00 PM on Monday, with countries aligning with BRICS facing an additional 10% tariff. This aggressive trade stance has raised concerns about global trade tensions and potential retaliatory measures. Major currency pairs showed mixed reactions, with EUR/USD gaining 15 pips to 1.0835 and USD/JPY dropping 20 pips to 143.80 as safe-haven flows emerged. The announcement particularly impacts emerging market currencies, with USD/CNH rising 0.3% on China's BRICS membership. Technical indicators suggest the DXY faces resistance at 104.50, with support at 103.80. Traders should monitor upcoming responses from affected nations and potential currency interventions as trade uncertainty increases market volatility.
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