US Dollar inches higher as Greer comments stir trade hopes

• DXY trades around the 103.00 zone on Tuesday as bulls attempt to extend Friday's recovery.
• Sentiment was lifted after US Trade Representative Greer noted ongoing tariff talks with around 50 countries.
• Key resistance for the US Dollar Index aligns near 103.70 with downside support forming close to 102.70.
  
  

The US Dollar Index (DXY), which tracks the performance of the US Dollar against six major currencies, is trading near the 103.00 region during Tuesday's session. Momentum picked up after upbeat labor market data last week, helping the index rebound from recent lows. Investors welcomed remarks from US Trade Representative (USTR) Jamieson Greer, who told the Senate Finance Committee that the US is engaged in tariff discussions with nearly 50 countries.

However, selling pressure resumed after the US confirmed additional tariffs to go into effect on April 9 against China.

Daily digest market movers: US Dollar sees choppy session on trade dialogue

• USTR Greer told lawmakers that the US is actively working with dozens of countries on tariff negotiations despite US tariffs expected to begin imminently.
• Optimism over trade momentum and hints at market access expansion for agriculture supported sentiment, although no clear timeline was offered.
• Despite engagement from several trading partners, Greer noted China remains resistant to negotiations, widening the rift between Washington and Beijing.
• In line with that, Trump Press Secretary Karoline Leavitt said as retaliation for China's applying 34% duties on US exports the US would add another 50% tariff to Chinese goods.
• Treasury Secretary Scott Bessent confirmed that President Trump will directly participate in future talks, while European Commission President von der Leyen warned of potential retaliation if no resolution is reached.
  
  

Technical analysis

The US Dollar Index remains within a narrow range near 103.00, reflecting cautious market behavior. The Moving Average Convergence Divergence (MACD) shows a buy signal, while the Relative Strength Index (RSI) at 41.87 and Bull Bear Power at -0.98 reflect a neutral stance. 

Despite this, bearish signals persist from the 20-day, 100-day, and 200-day Simple Moving Averages (SMA) all pointing lower. Similarly, the 10-day Exponential Moving Average (EMA) and SMA reinforce the downward tilt. 

Key resistance levels to watch include 103.48, 103.66 and 103.71, while immediate support stands at 102.73. A daily close above 103.18 remains crucial for bulls to regain control.