
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.