The dollar index (DXY00) today is up by +0.18%. The dollar today recovered from early losses and moved mildly higher as T-note yields jumped on the stronger-than-expected US Nov JOLTS job openings and Dec ISM services reports, which were hawkish for Fed policy and dampen the chances of additional Fed rate cuts in the near term.
The dollar today initially moved lower on negative carryover from Monday when the Washington Post reported that President-elect Trump's aides are weighing a tariff program covering only critical imports. If implemented, such a plan would disrupt global trade less than expected and reduce the inflationary impact of the tariffs, a dovish factor for Fed policy. Also, the US trade deficit widened in November, a negative factor for Q4 GDP and a bearish factor for the dollar.
