USD faces pressure as Trump announces 200% French tariffs, geopolitical moves

The US dollar is experiencing downward pressure following President Trump's announcement of potential 200% tariffs on French wines and champagne, escalating trade tensions with the EU. The protectionist measures could weaken USD against major pairs, particularly EUR/USD, as markets price in potential retaliatory actions from European partners. Trump's controversial statements regarding Greenland acquisition and the creation of a 'Board of Peace' taskforce for Gaza, involving Putin and Macron, add to geopolitical uncertainty weighing on dollar sentiment. His mention of knowing his preferred Fed chair candidate introduces additional monetary policy uncertainty. Markets are likely to see increased volatility in USD pairs as traders assess the impact of these developments on international trade relations and risk sentiment. Near-term support for DXY sits at 106.50, with resistance at 107.20.