The US Dollar remains steady amid ongoing selling pressure following further tariff discussions.

US Dollar Index Stays Flat Amid Persistent Selling Pressure and Tariff Concerns

The US Dollar Index (DXY), which measures the Greenback’s performance against a basket of six major currencies, held steady just below the 108.00 level during the European trading session on Wednesday. Selling pressure continued to weigh on the Dollar following comments from US President Donald Trump about a potential 10% tariff on all Chinese imports. Europe was also drawn into the discussion, as tariff debates remain unresolved.

The US economic calendar remains relatively quiet this week. With Federal Reserve (Fed) officials observing a blackout period ahead of the upcoming January 29 policy decision, market attention has shifted to the Mortgage Bankers Association (MBA) applications data for the week ending January 17. Last week’s remarkable 33.3% surge in applications captured traders’ interest, prompting speculation about whether a “Trump effect” is influencing the mortgage market.

Stay tuned for updates as market dynamics unfold, and explore how global economic events could shape the future of the forex market.