The dollar index (DXY00) today is up by +0.21%. The dollar is climbing today on a possible escalation of the trade war that would boost inflation and keep the Fed's policy restrictive. President Trump threatened to enact a 200% tariff on European wine, champagne, and other alcoholic beverages late Thursday if the EU doesn't repeal a tax on US whiskey. The weakness in stocks today has also boosted some liquidity demand for the dollar. Today's US economic news was mixed for the dollar as weekly jobless claims unexpectedly fell and Feb produce prices rose less than expected.
US weekly initial unemployment claims unexpectedly fell -2,000 to 220,000, showing a stronger labor market than expectations of an increase to 225,000.
