U.S. Dollar Index gains ground as traders focus on Trump’s tariff policy. Donald Trump said that 25% tariffs on Canada and Mexico will be imposed on March 4. In addition, he would impose a 10% tariff on Chinese imports.
Currently, U.S. Dollar Index is trying to settle above the resistance at 106.80 – 107.00. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance level, which is located in the 108.30 – 108.50 range.
EUR/USD found itself under strong pressure as traders reacted to tariff news. In the EU, traders focused on the Euro Area Economic Sentiment report. The report showed that Economic Sentiment improved from 95.3 in January to 96.3 in February, compared to analyst forecast of 96.
If EUR/USD stays below 1.0420, it will head towards the next support levle at 1.0300 – 1.0315.
