The dollar index (DXY00) today is up by +0.24% and just below Thursday's 2-week high. The dollar is moving higher today due to a slump in stocks, which has boosted some liquidity demand for the dollar. Also, President Trump's threats to boost tariffs on Canada and other US trading partners risk stoking inflation pressures that could keep the Fed from cutting interest rates, a supportive factor for the dollar.
Late Thursday, President Trump said a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%. The new Canadian tariffs would not apply to goods traded within the rules of the US-Mexico-Canada Trade Agreement, and a lower 10% would be kept on some energy-related imports. He also said he plans to impose blanket tariffs of 15% or 20% on most US trade partners.
