The dollar index (DXY00) today is up by +0.68% at a 1-week high. The dollar is climbing today on signs of strength in the US economy after Q4 GDP was left unrevised, and Jan capital goods new orders nondefense ex-aircraft and parts, a proxy for capital spending, rose more than expected. The dollar raced to its high today after President Trump said that the proposed 25% tariffs on Canada and Mexico will go into effect on March 4, and China will likewise be charged an additional 10% tariff on that date. Bearish factors for the dollar included a jump in weekly jobless claims to a 2-1/2 month high and weaker-than-expected Jan pending home sales.
US Q4 GDP was left unrevised at +2.3% (q/q annualized). The Q4 core PCE price index was revised upward to +2.7% from the previously reported +2.5%.
