The US dollar stabilizes amid the escalation of the trade war

The US dollar index rose on Thursday near the levels of 103.65 now for the second day of highs, as investors assessed the impact of the escalation of the global trade war on the economy and consumers.

In the latest developments, President Trump has vowed to impose additional tariffs, following retaliatory measures from the European Union and Canada in response to his tariffs on steel and aluminum.

Trump also renewed his warnings against the imposition of reciprocal tariffs that will come into force next month, adding to the uncertainty in global markets.

On the other hand, the US inflation data represented by consumer prices in the United States released on Wednesday came less than expected, which sent some relief to investors, but the improvement it caused may be temporary, as the data did not fully reflect the series of Trump's tariffs.

However, the full impact of the new tariffs is not yet clear, which raises fears that inflation may rise again in the coming months.

The Federal Reserve is due to announce its policy decision next week, with markets widely expecting the central bank to keep interest rates unchanged.

The focus today will be on the US Producer Price Index and US unemployment benefit applications.