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Barchart
Barchart
Rich Asplund

Dollar Weakens Ahead of US Tariff Announcement

The dollar index (DXY00) today is down by -0.26%.  The dollar is under pressure today because of concerns that US tariffs will start a trade war that derails the economy.  Also, a decline in T-note yields has weakened the dollar’s interest rate differentials after the 10-year T-note yield fell to a 4-week low today. Losses in the dollar are limited after the US Mar ADP employment and Feb factory orders report rose more than expected, which is a hawkish factor for Fed policy.  Also, today’s stock slump has boosted liquidity demand for the dollar.

The US Mar ADP employment change rose +155,000, stronger than expectations of +120,000.

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