The dollar index (DXY00) today is up by +0.57% and posted a 1-week high. The dollar is climbing today on carryover support from last Friday when 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 extended its advance today after the Jan ISM manufacturing index expanded at the strongest pace in more than 3.25 years.
The partial US government shutdown enters its third day today. However, the shutdown is expected to be brief, as the House returns from a week-long break today and may vote on the spending bill later today or tomorrow. Late last Thursday, President Trump said 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.
