The dollar index (DXY00) today is up by +0.52%. The dollar is climbing today after CNN reported that President-elect Trump is considering declaring a national emergency to push through his tariff plans, which could roil global trade and boost price pressures. The dollar extended its gains after the 10-year T-note yield jumped to an 8-1/2 month high, strengthening the dollar’s interest rate differentials.
Today’s US labor market news was mixed for the dollar as the Dec ADP employment change rose less than expected but weekly jobless claims unexpectedly fell to a 10-1/2 month low. Dovish comments today from Fed Governor Waller limited gains in the dollar when he said he believes more Fed interest rate cuts will be appropriate.
