The dollar index (DXY00) today is up by +0.53%. The dollar is climbing today after President Trump nominated Keven Warsh as the next Fed Chair. Mr. Warsh is seen as more hawkish than other Fed Chair candidates and often emphasized inflation risks during his tenure as a Fed Governor from 2006-2011. The dollar added to its gains today after US Dec producer prices rose more than expected and the Jan MNI Chicago PMI expanded at the strongest pace in more than two years, hawkish factors for Fed policy.
The dollar also rose after President Trump said late Thursday that he reached a tentative deal with Senate Democrats to avert a US government shutdown. The deal would fund the Homeland Security Department for two weeks to allow more time for talks on immigration enforcement and contains full-year funding for several other government agencies.
