The dollar index (DXY00) today is up by +0.17%. The dollar is moving higher today due to an easing of US-China trade tensions, which is positive for global growth prospects and the dollar after President Trump said on Sunday that, “I think we’re going to be fine with China.” The dollar also has support rose as the alleged loan frauds impacting Zions Bancorp and Western Alliance Bancorp appear to be confined and show no signs of contagion.
Gains in the dollar are limited as today’s rally in stocks curbs liquidity demand for the dollar. Also, the ongoing shutdown of the US government is bearish for the dollar. The longer the shutdown is maintained, the more likely the US economy will suffer, a negative factor for the dollar.
