The dollar index (DXY00) is up by +0.13% today. The dollar is moving higher today amid weakness in stocks, which is boosting liquidity demand for the currency. Also, hawkish comments today from New York Fed President John Williams boosted the dollar, as he said inflation is still quite high. In addition, higher crude oil prices today have pushed up inflation expectations and could persuade the Fed to keep monetary policy tight, a supportive factor for the dollar. The dollar fell from its best level after the US May trade deficit widened to a 14-month high.
The US May trade deficit widened to -$77.6 billion, the largest deficit in 14 months and a negative factor for Q2 GDP.
