The dollar index (DXY00) Tuesday rose by +0.51%. The dollar found support Tuesday, based on Monday night’s comments from President Trump, who said he was considering tariffs on everything from steel and copper to semiconductor chips and wanted universal tariffs at “much bigger” than 2.5%. Also, higher T-note yields on Tuesday strengthened the dollar’s interest rate differentials and supported the dollar. Tuesday’s US economic news was mixed for the dollar after Dec capital goods new orders rose more than expected, but Jan consumer confidence unexpectedly fell to a 4-month low.
US Dec capital goods new orders nondefense ex-aircraft and parts, a proxy for capital spending, rose +0.5% m/m, stronger than expectations of +0.3% m/m.
