The dollar index (DXY00) Tuesday fell by -0.94%. The dollar tumbled Tuesday as trade worries eased after the US delayed a 25% tariff on goods from Canada late Monday. Also, China’s restrained response to US tariffs eased concerns of a broader trade war. The stabilization of stock prices Tuesday also reduced liquidity demand for the dollar.
Losses in the dollar accelerated on Tuesday’s weaker-than-expected US JOLTS job openings and factory orders reports. However, Monday evening’s comments from Chicago Fed President Goolsbee were hawkish for Fed policy and dollar-supportive when he said the Fed should proceed cautiously before cutting interest rates. Also, San Francisco Fed President Daly said the US economy is in a good position, and the Fed can take its time before deciding on interest rates.
