Dollar gains remain fragile as trade negotiations hit roadblocks across multiple fronts.
Market sentiment turns cautious with EU preparing countermeasures against US trade demands.
DXY struggles to reclaim lost ground,Meme coins binance listing trading 1% below recent highs despite Treasury yield support.
The greenback shows modest strength in Thursday's session as Treasury markets react to escalating global trade tensions. However, the currency's recovery appears limited, with the Dollar Index failing to break meaningfully above the 97.50 resistance level that's contained price action since Monday's rebound.
Ongoing trade discussions between Washington and Brussels face mounting complications. European negotiators have voiced frustration over what they characterize as shifting US demands, prompting the EU Commission to draft retaliatory options. These potential measures could disrupt cross-border service provisions and alter public procurement dynamics, creating new headwinds for dollar bulls.
Across the Pacific, Japanese trade envoy Akazawa's Washington visit has yet to produce breakthroughs. The stalemate persists as US officials emphasize structural trade imbalances, particularly in automotive and agricultural sectors. This diplomatic gridlock reinforces the cautious tone permeating currency markets, keeping major FX pairs range-bound.
The Dollar Index's technical picture reflects this uncertainty. While bouncing from Monday's 97.25 low, the DXY continues to face resistance near 97.50 - a critical level that previously served as support. Market participants note the index remains approximately 1% below last week's 98.50 peak, with momentum indicators suggesting limited upside potential in the near term.
