US Dollar Rebounds After Trump Speech. Unemployment, GDP Data In View

The US dollar regained some lost ground this week, advancing by over 0.10% following President Donald Trump’s address at the World Economic Forum (WEF) in Davos. The move came as traders adjusted positioning amid heightened volatility risks tied to US–Europe relations, particularly surrounding renewed tensions over Greenland and earlier threats of additional trade tariffs. The US Dollar Index (DXY), which opened the week under pressure, found technical support near the 98.40 level, from where a modest rebound unfolded.

During his WEF appearance, President Trump struck a notably more conciliatory tone compared to remarks made over the weekend. He confirmed that the US would not proceed with further tariff hikes on European nations opposing Washington’s strategic interest in Greenland. This apparent policy reversal helped ease geopolitical tensions and reduced demand for traditional safe-haven assets. Trump further noted that discussions were ongoing toward a framework agreement involving NATO on security and administrative oversight in Greenland, a development that markets interpreted as a step toward diplomatic engagement rather than unilateral action.

Risk sentiment improved notably in the aftermath of the speech. US equities rallied, with Wall Street closing firmly in positive territory. The S&P 500 snapped a two-day losing streak, rising approximately 1.13%, while the NASDAQ 100 gained around 1.47%, ending the session near 25,395 and reinforcing technical signals of a broader trend continuation.In the commodities space, gold retreated from record highs, easing toward the $4,700 level as investors pared back defensive positions amid improved risk appetite and a stabilizing US dollar.At the time of writing, the DXY is trading within a narrow range during the Asian session, reflecting a temporary pause in momentum as markets shift focus toward key US macroeconomic releases. Attention is firmly on US GDP figures and weekly unemployment claims, which are expected to provide fresh insight into the resilience of the US economy and shape expectations around Federal Reserve policy. A strong data outcome could reinforce the dollar’s recovery, while softer readings may limit upside and keep the index confined within recent technical boundaries.

Technical price action and chart structure (DXY)

Key support levels:

98.20–98.40 zone: Critical short-term support. A sustained break below would signal renewed bearish momentum.

97.80: Secondary support; breach could open the door to deeper correction.

Key Resistance Levels:

99.00–99.10: First resistance cluster. A successful break and close above this level would indicate a shift toward bullish conviction.

99.40: Next target; may coincide with technical resistance and prior congestion.

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