View more search results

Zarejestruj się

Market Insights > Daily Market Analysis

3 June 2025,07:14

Daily Market Analysis

Dollar Index Rises Ahead of Fed Minutes as Trade Policy Uncertainty Lingers

3 June 2025, 07:14

Share on:

Key Takeaways:

*U.S. Appeals Court paused the block on Trump’s global tariffs, reviving trade war fears and geopolitical uncertainty.

*Dollar Index retreated after hitting resistance, pressured by mixed U.S. economic data and declining risk appetite.

Trade war tensions have re-emerged after a U.S. federal appeals court temporarily paused the recent decision to block former President Donald Trump’s global tariff strategy. On Thursday, the U.S. Court of Appeals for the Federal Circuit issued a stay order, delaying the lower court’s earlier ruling that deemed Trump had overstepped his authority in implementing reciprocal trade tariffs. This pause, effective until at least June 9, allows both parties time to submit legal arguments regarding the future of the appeal.

The legal uncertainty has rekindled fears of renewed trade friction, reversing the initial wave of risk-on sentiment and weighing on the U.S. dollar. Markets had previously welcomed the lower court’s ruling as a step toward easing global trade tensions. However, the latest development signals that tariff disputes remain unresolved and may once again become a geopolitical and economic flashpoint.

On the data front, the U.S. Dollar Index, which tracks the greenback against a basket of six major currencies, pulled back after testing a key resistance level. This retreat was driven by weaker-than-expected macroeconomic figures. U.S. GDP contracted by an annualized 0.2% in Q1, performing slightly better than the consensus of -0.3%, but still highlighting underlying economic softness. The contraction was largely attributed to a surge in imports, fueled by tariff fears, without a matching increase in domestic consumption or inventory investment.

Additionally, Initial Jobless Claims rose to 240K, higher than the expected 229K and the prior reading of 226K, further dampening sentiment toward the dollar.

Technical Analysis

Dollar_,index, 4-Hour Chart:

The Dollar Index remains under pressure, trading near a critical support level at 98.90. The MACD indicator signals increasing bearish momentum, while the RSI hovers at 45, remaining below the neutral 50 line—indicating potential for continued downside movement.

A confirmed break below 98.90 could open the door for further losses toward the next support level at 98.00. Conversely, if the index holds this support, a rebound toward the 100.55 resistance level may occur, with consolidation likely between established support and resistance zones.

Resistance Levels: 100.55, 101.90
Support Levels: 98.90, 98.00

Start trading with an edge today

Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.

Start trading with deposits as low as $50 on our standard accounts.
Get access to 24/7 support.
Access hundreds of instruments, free educational tools, and some of the best promotions around.

Join Now

Latest Posts

EUR/USD Edges Lower Amid Stronger Dollar, but ECB Outlook Offers Support

Canadian Dollar Slips Ahead of BoC Decision as Trade Concerns Weigh

Szybkie i łatwe otwieranie konta

Utwórz Konto na Żywo

1

Zarejestruj się

Zarejestruj się na Live Account w PU Prime za pomocą naszego procesu bez żadnych kłopotów.
2

Fundusz

Bez wysiłku doładuj swoje konto za pomocą szerokiego zakresu kanałów i akceptowanych walut.
3

Rozpocznij Trading

Uzyskaj dostęp do setek instrumentów w ramach wiodących na rynku warunków handlu

Utwórz Konto na Żywo

Risk Warning: Trading Contracts for Difference (CFDs) involves a high level of risk and may not be suitable for all traders. The use of leverage magnifies both potential profits and losses, meaning you could incur losses greater than your initial deposit. It is important to understand the risks involved and assess whether you can afford to lose your invested capital. When trading CFDs, you do not own the underlying assets and have no rights to them. Past performance is not indicative of future results. The information provided on this website is for general informational purposes only and does not constitute investment advice, recommendation, or solicitation to engage in any investment activities. It does not take into account your personal financial circumstances, investment objectives, or risk tolerance. Any interaction with this website is an individual and voluntary action on the part of the user. The content on this website should not be construed as an invitation to enter into or acquire PU Prime’s financial services and products. Under no circumstances shall the Company be held liable for any loss or damage, in whole or in part, arising from, or in connection with, any CFD trading activities. Please review the legal documents available on our website to ensure that you fully understand the risks associated with CFD trading. If necessary, seek independent advice from qualified professionals.

Regional Restrictions: This information on this website is not intended for distribution to, or use by, any person or entity who is a citizen or resident of certain jurisdictions, including, but not limited to, Singapore, the United States, China, and jurisdictions listed on the FATF “blacklist”, and the major global sanctions lists. It is also not intended for distribution or use in any jurisdiction where such distribution or use would violate local laws or regulations.

PU Prime is a trading name for multiple licensed entities operating across different jurisdictions, each authorised to provide specific financial services in accordance with local regulations. Upon registration, you will be assigned to the entity that corresponds with your location and complies with the applicable regulatory requirements. The entity you are registered with will govern your trading activities, which will be subject to the oversight and regulations of its respective regulatory authority. While these authorities have granted a securities or investment dealer license to the respective entity, they do not endorse the products offered.

PU Prime Limited is securities dealer authorised and regulated by the Financial Services Authority of Seychelles under License No. SD050, with its registered address at CT House, Office 9A, Providence, Mahe, Seychelles.

PU Prime Ltd is an investment dealer authorised and regulated by the Financial Services Commission of Mauritius under License No. GB23202672, with registered address at Suite 201 Level 2, The Catalyst, Cybercity Ebene, Mauritius.

PU Prime (Pty) Ltd is a financial service provider authorised and regulated by the Financial Sector Conduct Authority of South Africa under FSP No. 52218, with registered address at 37 Harley Street, Ferndale, Randburg, Gauteng 2194, South Africa.

PU Prime Trading Pty Ltd is an Australian financial services licensee authorised and regulated by the Australian Securities and Investments Commission of Australia under License No. 410681, with its registered address at Suite 103, Level 1, 17 Castlereagh St, Sydney, NSW 2000, Australia. For Australian clients who have onboarded through https://www.puprime.au, the product issuer is PU Prime Trading Pty Ltd.

Finzero Cap Ltd. is registered in the Republic of Cyprus under registration number HE414308. Its registered office is located at Archiepiskopou Makariou III, 160-1st floor, 3026, Limassol, Cyprus.

We and third parties use cookies to enhance your user experience. For more information, see our Cookie Policy and Privacy Policy. By clicking "Accept", you agree to the use of cookies.