The dollar index (DXY00) today is up by +0.03% at a 2-week high. The dollar is climbing today on positive carryover from Thursday when President Trump said that the proposed 25% tariffs on Canada and Mexico will go into effect on March 4, and China will likewise be charged an additional 10% tariff on that same date. The dollar gave up most of its advance after US Jan personal spending unexpectedly declined and the Jan core PCE price index, the Fed’s preferred inflation gauge, met expectations, dovish factors for Fed policy.
US Jan personal spending unexpectedly fell -0.2% m/m, weaker than expectations of a +0.2% m/m increase and the biggest decline in nearly 4 years. Jan personal income rose +0.9% m/m, stronger than expectations of +0.4% m/m and the biggest increase in a year.
