Technical Analysis Summary: USD Movement Amid Tariff Announcements
Date: November 7, 2025
Market Overview
The US dollar (USD) has strengthened against major currencies such as the Euro (EUR), Japanese Yen (JPY), and British Pound (GBP) as the market reacts to recent tariff announcements by former President Trump. The announcement of a 35% tariff on Canadian goods has led to increased volatility in the currency markets.
Currency Pair Analysis
EUR/USD
The EUR/USD pair has experienced significant fluctuations, initially declining but recovering most of its losses as the US session commenced. Key technical levels to watch include support around 1.0800 and resistance near 1.0900.
GBP/USD
The GBP/USD pair is down approximately 0.44%, influenced by disappointing economic data from the UK. The GDP estimate fell by 0.1%, missing expectations, while manufacturing output dropped by 1.0%. Key levels for GBP/USD include support at 1.2500 and resistance at 1.2600.
USD/JPY
The USD/JPY pair has risen by 0.47%, reflecting the USD's strength. Traders should monitor the support level at 140.00 and resistance at 142.00 for potential trading opportunities.
Impact of Tariff Announcements
The announcement of tariffs has led to a spike in the USD/CAD pair, which initially surged but has since retraced about 50% of its gains. Canadian Prime Minister Carney has reiterated Canada's commitment to protecting its economic interests during ongoing trade negotiations.
Market Sentiment and Economic Indicators
US stock markets have reacted negatively to the tariff news, with the Dow Jones down 269 points, the S&P 500 down 34 points, and the Nasdaq down 105 points. In the US debt market, yields have increased across various maturities, indicating a shift in investor sentiment.
Conclusion
Traders should remain vigilant as the market adjusts to the implications of the tariff announcements. Key technical levels for the major currency pairs will be crucial for determining potential entry and exit points in the current volatile environment.