Week Ahead: Does The Dollar Still Have Legs After The Tariff Ruling?
Seeking Alpha
February 22, 2026
AI-Generated Deep Dive Summary
The dollar’s resilience appears to be waning as it grapples with a corrective phase following the Supreme Court’s ruling on tariffs. The court invalidated President Trump’s emergency powers to impose broad tariffs, though Trump swiftly countered by announcing new tariffs under Section 122 of the 1974 Trade Act. This move was largely anticipated and has not significantly disrupted the dollar’s current trajectory, which remains tied to technical corrections and consolidation in forex markets.
The euro, meanwhile, shows reduced sensitivity to economic data and interest rate changes, instead reflecting a technical correction following its sharp rally in January amidst tensions over Greenland. The pound sterling has been weakened by softer labor market conditions and moderating price pressures, further exacerbated by the strong dollar environment. Similarly, the Canadian dollar appears less responsive to interest rate shifts, continuing to navigate its own corrective phase despite Canada’s robust economic fundamentals.
Commodity exposure and monetary policy divergence have bolstered the Australian dollar, driving it to its highest level in three years earlier this month. This highlights a broader trend where commodity-linked currencies are benefiting from diverging global monetary policies, particularly as other major currencies like the euro and pound face technical corrections tied to broader market sentiment.
For finance enthusiasts and investors closely monitoring global markets, understanding these dynamics is crucial. The interplay between geopolitical developments, tariff policies, and technical market movements underscores the importance of staying attuned to both macroeconomic trends and micro-technical indicators in forex analysis. As global trade tensions evolve, so too will the relative strengths and weaknesses of major currencies, offering opportunities for strategic investment decisions.
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Originally published on Seeking Alpha on 2/22/2026