Insights 
VT 
Key Points:
- USDX rose to 97.602, nearing June highs after Trump’s tariff threats on copper, semiconductors, and pharmaceuticals
- Copper futures spiked over 10% in the U.S., while global markets brace for August 1 trade deadline
The U.S. dollar continues to strengthen, trading at 97.241 at the time of writing, after reaching a session high of 97.356. The broader USDX index climbed to 97.602, its highest level since June 25, buoyed by President Trump’s widening tariff net and hawkish rhetoric
The biggest catalyst of the day came overnight when Trump announced a 50% tariff on copper imports, triggering a 10% rally in U.S. copper futures. The metal—vital to electric vehicles, power infrastructure, and military equipment—had already been under supply pressure globally.
By contrast, copper prices fell in London and Shanghai, as traders anticipate logistical bottlenecks in rushing supply to the U.S. before the tariffs take effect. The move underscores how Trump’s tariff strategy is sending ripples across both commodity and currency markets.
Pharma and Semiconductor Sectors Targeted
Trump also warned of new tariffs on pharmaceuticals and semiconductors, two sectors closely tied to East Asian exporters like Japan and South Korea. These nations face a deadline of August 1 to reach individual trade agreements—or risk sweeping tariff hikes.
While on Monday Trump suggested that the date was “firm, but not 100% firm,” he reversed course Tuesday, stating “no extensions will be granted.” The hardening stance has unsettled markets, with Wall Street futures sliding 0.1% and the S&P 500 cash index extending a 0.8% loss earlier in the week.
Technical Analysis
The US Dollar Index remains in a short-term consolidating phase just below recent highs near 97.47, after rallying from intraday lows around 96.79. The price is oscillating around the 30-period MA after briefly regaining momentum following a strong jobs report (~147k jobs added), which supported a brief bullish uptick. However, the rally faded as the MACD histogram flattened and the moving averages (5, 10, 30) began to converge, signaling a potential stall in upward momentum.
Picture: Dollar finds footing above 97.20 as bulls eye breakout zone, as seen on the VT Markets app
On the upside, a move above the 97.40–97.47 area will be key to restoring bullish technical structure. A breakout above that zone could pave the way to test 97.70 and even 98.00 in the absence of conflicting macro news.
Conversely, a drop below support near 97.15–97.20, held multiple times today, would increase the likelihood of a retest of recent lows around 96.80 and potentially 96.50.
