Published: 24 February 2026,06:43
Daily Market Analysis New
*Dollar index trades sideways as markets struggle to find a clear macro direction
*US tariff policy seen as a double-edged sword for growth, inflation, and fiscal balance
*Treasury yields edge higher as investors cautiously price potential tariff-driven inflation
*Traders await global responses to US trade moves for the next dollar catalyst
Market Summary:
The dollar index continues to consolidate within a narrow range as investors struggle to establish a strong directional bias. Mixed signals surrounding the US economic outlook, combined with uncertainty over trade policy implications, have kept the currency largely range-bound in recent sessions.
A key focus remains the administration’s tariff strategy. Analysts widely view the policy as a double-edged sword. On one hand, higher import duties could increase government revenue and potentially ease fiscal pressures while also creating inflationary pressure that may justify prolonged tight policy from the Federal Reserve. On the other hand, markets remain cautious that retaliatory measures from major trading partners could disrupt global trade flows and weigh on US growth momentum.
Investors are therefore closely monitoring how global leaders respond to the latest tariff developments. Early signs of resistance from overseas policymakers have reinforced concerns that tit-for-tat trade actions could emerge, which would increase macro volatility and complicate the US growth outlook.
Meanwhile, US Treasury yields have edged slightly higher as institutional investors begin cautiously pricing in possible tariff-driven inflation risks. While theory suggests tariffs should push prices higher, traders remain skeptical after previous rounds of aggressive tariffs produced limited sustained inflation impact and failed to materially improve fiscal conditions. This uncertainty has kept the dollar upside modest rather than decisive.
Overall, with conflicting forces between potential inflation support and growth risks, the dollar is likely to remain consolidation-bound in the near term. Market participants will watch both incoming policy signals and technical breakouts for confirmation of the next sustained move.
Technical Analysis
The Dollar Index is trading higher while testing resistance at 97.95, with momentum indicators supporting a cautiously bullish outlook. MACD shows fading bearish momentum, and RSI at 58 remains above the midline, suggesting underlying buying pressure is still present.
A successful breakout above 97.95 would likely trigger further upside, potentially pushing the index toward the next resistance at 98.70. Traders should monitor price action closely for confirmation of sustained bullish momentum.
However, if the index fails to break higher, it may fall back into consolidation and re-test support at 97.00, with deeper support located at 95.75.
Resistance Levels: 97.95, 98.70
Support Levels: 97.00, 95.75
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