The dollar index (DXY00) slid to a 1-week low today and is down -0.05%. The dollar is under pressure today after T-note yields fell on the weaker-than-expected US economic reports on the Q4 employment cost index and Dec retail sales. The weaker reports bolstered expectations that the Fed will resume easing monetary policy this year, a bearish factor for the dollar. Strength in the Chinese yuan also undercut the dollar after the yuan rose to a 2.5-year high against the dollar today.
The US Q4 employment cost index rose +0.7% q/q, weaker than expectations of +0.8% q/q and the smallest increase in 4.5 years.
