The dollar index (DXY00) today is up by +0.28% and posted a new 3.5-month high. The dollar is climbing as the war in Iran shows no signs of easing, which threatens to keep crude oil prices elevated. Higher crude prices threaten the European and Japanese economies that rely on energy imports, weakening their currencies. Gains in the dollar were limited after US economic news showed that Q4 GDP was revised lower, and Jan capital goods new orders, nondefense ex-aircraft and parts, were weaker than expected.
US Jan personal spending rose +0.4% m/m, stronger than expectations of +0.3% m/m. Jan personal income rose +0.4% m/m, weaker than expectations of +0.5% m/m.
