The dollar index (DXY00) today is down by -1.40%. The dollar is sliding today on concern the escalation of the US-China trade war will derail the economy and lead to stagflation. The US raised tariffs on China Wednesday to 125% from 104% after China retaliated and imposed 84% tariffs on US goods. The dollar is also facing a confidence crisis as the US renegotiates its relationships with its trading partners, diminishing its reserve-currency status and prompting some foreign investors to liquidate their dollar assets. The dollar extended its losses today after US March consumer prices rose less than expected, a dovish factor for Fed policy.
US weekly initial unemployment claims rose +4,000 to 223,000, right on expectations. Weekly continuing claims fell -43,000 to 1.850 million, showing a stronger labor market than expectations of 1.886 million.
