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Barchart
Barchart
Rich Asplund

Dollar Rallies on Euro and Yen Weakness

The dollar index (DXY00) today extended this week’s rally and is up by +0.22% at a 1.75-month high.  Political uncertainty in France and Japan is undercutting the euro and yen, respectively, to the benefit of the dollar.  Strength in stocks today is reducing liquidity demand and limiting gains in the dollar. 

The ongoing shutdown of the US government is bearish for the dollar as the shutdown entered its second week on Monday.  The longer the shutdown is maintained, the more likely the US economy will suffer, a negative factor for the dollar. 

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