U.S. Dollar Rallies As Trump Plans To Impose A 10% Tariff On China: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Rallies On Tariff Threats

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 Tests Support At 1.0420 – 1.0435

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.

GBP/USD Is Under Pressure

GBP/USD pulled back as traders focused on general strength of the U.S. dollar. Trump’s tariff policy may provide significant support to the American currency in the upcoming trading sessions.

A move below the support level at 1.2600 – 1.2615 will open the way to the test of the next support at 1.2485 – 1.2500.

USD/CAD Gains Ground As Traders Worry About Tariffs

USD/CAD tested new highs as traders worried that 25% tariffs would put significant pressure on the Canadian economy.

USD/CAD climbed above the resistance at 1.4330 – 1.4350 and made an attempt to settle above the 1.4440 level. If USD/CAD moves above 1.4440, it will head towards the nearest resistance level at 1.4485 – 1.4500.

USD/JPY Moves Higher Amid Rising Treasury Yields

USD/JPY is moving higher as traders focus on rising Treasury yields. The yield of 2-year Treasuries moved towards the 4.10% level, while the yield of 10-year Treasuries climbed above 4.28%.

If USD/JPY settles above the 50 MA at 150.29, it will head towards the nearest resistance level at 151.50 – 152.00.

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