The Further Step of U.S. Dollar's 'Weaponization', Based on Donald Trump's New Rule

A controversial new rule being implemented by Donald Trump will pave the way for the US to impose punitive tarrifs on the goods from countries with undervalued exchange rate, said the US department of commerce.

The action brings more complaints about exchange rate manipulation in Japan and other economies, make the US‘ global forex market with over US$6 trillion of daily trading volumes become Trump’s new battlefield of trade friction.

The rule marks the US another step toward the weaponization of the USD, following the verbal intervention to devalue the dollar and accusation that the Fed has led to a stronger dollar that has harmed US manufacturers and other exporters. This appears to be intended to send a signal to all the trading partners of the US, which is that a significant weakening of their currencies relative to the dollar may lead to the retaliation from Trump.

USDX Daily Pivot Points 97.89-97.93

S1: 97.81 R1: 97.81

S2: 97.68 R2: 98.14