Dow, S&P 500 Fall and Nasdaq give up winnings when Trump moves in front of customs rates

The US dollar (DX = F, DX-Y.NYB) is on the field to secure its best week since mid-November as a threatening duty deadline pushes the Greenback currency to new heights.

The US dollar index that measures the dollar’s value compared to a basket of six foreign currencies – euro, Japanese Yen, British Pounds, Canadian Dollar, Swedish Krona and Swiss Franc – rose about 0.5% on Friday to rebound from its Worst achievement in over a year last week.

The index has achieved approx. 8% since the low man in September and has increased by approx. 5% since election day.

The dollar’s price has been largely driven by two main catalysts: President Trump’s election and the subsequent Republican sweep along with the calibration of future fed relief in the light of strong economic data.

But the unknown of Trump’s customs policy has been the biggest driver in recent weeks and seems to remain that way in the coming months.

“In the event that there was any long-term doubt, investors estimate tariffs as a dollar positive that we expected,” wrote Capital Economics Senior Markets Economist James Reilly in a note published on Friday.

But “for all attention -rares that have received in recent months, they are far from priced in,” he warned.

On Friday, the White House repeated President Trump’s plan to adopt 25% tariffs on Mexico and Canada as soon as Saturday, and refused a former Reuters Report suggesting Trump Weighs a customs plan that includes a delay of implementation Within one month.

According to Reilly reflects elevated volatility in currency markets as dealers ” something,“But also said they seem reluctant to take Trump by his words.

“That’s an important reason why we think the dollar still has a bit more upside if our work assumption currently remains a 10% universal duty and 60% tax on imports from China,” he said.