The US Dollar (USD) maintains a firm footing on Wednesday, opening the day with a mildly bullish tone amid lingering tariff tensions and cautious market sentiment. Market participants remain on edge following US President Donald Trump’s latest tariff warnings and the extended deadline for reciprocal duties, which have kept risk appetite in check and underpinned demand for the USD across the board.
The US Dollar Index (DXY), which tracks the value of the Greenback against a basket of six major currencies, is up roughly 1.5% from its July 1 low at 96.38— its weakest level in over three years. At the time of writing, the index is hovering near 97.64 during European trading hours, as traders await the release of the Federal Open Market Committee (FOMC) meeting minutes later this Wednesday.
Trade tensions remain front and center after US President Trump escalated tariff threats during a Cabinet meeting at the White House on Tuesday. “Today we’re doing copper,” he said, announcing a steep 50% tariff on copper imports to boost domestic production of the metal and bring manufacturing jobs back to the United States (US). He also warned that tariffs on pharmaceuticals are “going to be tariffed at a very, very high rate, like 200 percent,” adding that the measure would be announced soon and take effect after at least a year.
Additionally, Trump reaffirmed his warning that BRICS nations will face an additional 10% levy. He stated there would be no exceptions, alleging that the BRICS is working to replace the US Dollar. He emphasized that the Greenback is "king" and any challenge to its dominance would incur a "big price." During the 17th BRICS summit in Rio de Janeiro, Brazil, leaders pushed back against rising US trade aggression, with Brazilian President Lula da Silva remarking, “The world does not want an emperor,” in a veiled swipe at Washington’s tariff tactics. The group voiced serious concerns over unilateral measures disrupting global trade and renewed calls to reduce dependence on the US Dollar.
The US Dollar Index (DXY) is attempting to extend its rebound after marking a multi-year low on July 1. The index had briefly broken below a falling wedge pattern but has since climbed back inside the formation, suggesting a possible bear trap and signaling bullish intent. However, the DXY now faces a critical hurdle around the 97.70–97.80 support level, which has turned into resistance. This zone is further reinforced by the 21-day Exponential Moving Average (EMA) and the upper boundary of the wedge pattern, adding technical weight to the current stalling point.
Momentum indicators are gradually turning supportive. The Relative Strength Index (RSI) is trending higher, currently at 44.88, although it remains below the neutral 50 mark. Meanwhile, the Moving Average Convergence Divergence (MACD) has flipped into positive territory with a fresh bullish crossover, suggesting renewed bullish momentum. A daily close above 97.80 would confirm a breakout from near-term resistance and could pave the way for a move toward the next target at 98.40, the high of June 24. On the flip side, rejection here would keep the broader downtrend intact and shift focus back to the 97.00–96.80 support zone.
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.23% | 0.09% | 0.07% | 0.31% | 0.15% | 0.23% | 0.05% | |
EUR | -0.23% | -0.13% | -0.17% | 0.07% | -0.04% | -0.01% | -0.07% | |
GBP | -0.09% | 0.13% | 0.02% | 0.21% | 0.01% | 0.06% | -0.03% | |
JPY | -0.07% | 0.17% | -0.02% | 0.20% | 0.08% | 0.14% | -0.02% | |
CAD | -0.31% | -0.07% | -0.21% | -0.20% | -0.10% | -0.07% | -0.14% | |
AUD | -0.15% | 0.04% | -0.01% | -0.08% | 0.10% | 0.03% | -0.02% | |
NZD | -0.23% | 0.00% | -0.06% | -0.14% | 0.07% | -0.03% | -0.09% | |
CHF | -0.05% | 0.07% | 0.03% | 0.02% | 0.14% | 0.02% | 0.09% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).