The dollar index (DXY00) today is up by +0.49%. The dollar is climbing today on Monday night’s comments from President Trump, who said he was considering tariffs on everything from steel and copper to semiconductor chips and that he wants universal tariffs at “much bigger” than 2.5%. Also, higher T-note yields today have strengthened the dollar’s interest rate differentials. Today’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.
