The dollar index (DXY00) today is up by +0.57% and posted a 1-week high. The dollar is climbing today on increased safe-haven demand from President Trump’s threat to impose 25% tariffs on goods from Canada and Mexico on Saturday. The dollar also found support from today’s US economic news, which showed that Dec personal spending rose more than expected. Gains in the dollar accelerated due to hawkish comments from Fed Governor Bowman, who said she wants to see additional progress on inflation before the Fed cuts interest rates further.
US Dec personal spending rose +0.7% m/m, stronger than expectations of +0.5% m/m. Dec personal income rose +0.4% m/m, which is right on expectations.
