DXY: US Dollar Steady Near 104 as FX Traders Brace for D-Day: Tariffs on “All Countries”

Greenback was treading water Tuesday but can you blame it — there’s this big news coming tomorrow and the uncertainty is huge.

🔔 Tariff Update Draws Closer

• The US dollar index DXY was floating sideways early Tuesday with forex speculators holding their breath ahead of the highly awaited April 2 deadline. What’s that about? It’s the due date for Donald Trump’s reciprocal tariffs update and everyone and their dog are keen to find out what happens next.
• The American currency is in a holding pattern — on the one hand, lofty tariffs may dent consumer confidence and raise prices. But on the other hand, they can make the buck more competitive in forex markets.

💫 Gyrations Around 104

• That’s why the buck remained pinned near the 104.00 mark with little to no movement on either side. A contrarian scenario — if Trump unveils a softer-than-expected tariff plan, this could provide some relief to the dollar and help it gain traction as the muddy outlooks gets cleared up a bit.
• The US President said over the weekend that his tariff plan will include “all countries” and leave no room to wiggle. He also said that the plan will not be focused on the top 15 countries with import duties on US goods.

💵 Dollar Lower by 5.5% in 10 Weeks

• “You’d start with all countries,” Trump told journalists on Air Force One late Sunday. “So let’s see what happens. There are many countries.” “Who told you 10 or 15 countries?” Trump asked a reporter. “You didn’t hear it from me.”
• The US dollar has been sliding against major rivals on the forex board. For the past two and a half months, the currency has given up about 5.5% from its valuation.