US dollar index dips as Trump threatens EU with new tariffs — FXStreet

According to FXStreet's research, the US Dollar Index is in a bearish trend. The greenback is currently trading below the 100-point psychological level and is potentially heading towards a 2025 low of 97.9 points. Still, there are signs that this decline may slow down.

Uncertainty surrounding tariffs has resurfaced following President Trump's threats to enact duties on the EU and smartphone manufacturers. But it is not yet known if tariffs will also be applied to pharmaceuticals and semiconductors. Two weeks ago, Trump said the US would send letters to some trading partners, asking them to put unilateral taxes on goods that are imported to the nation to cover the costs of doing business in America.

It's also not clear if these new tariff rates are actually new or if they'll replace the ones that were already announced. The mercurial nature of Trump's policy, compounded by the escalating national debt and budget deficits, poses substantial risks that could further erode confidence in the US dollar.

The impetus of the daily candles signals a possible transition into a somewhat pessimistic trend, with consolidation relevant on the current day, May 27. The next downside target is the 2025 low of 97.90.