The dollar index (DXY00) on Monday rose by +0.27%. The dollar moved higher on Monday after the Trump administration signaled an openness to a trade deal with China, dampening trade tensions. However, Monday's sharp rebound in stocks limited demand for the dollar in terms of liquidity. Also, dovish comments from Philadelphia Fed President Anna Paulson were bearish for the dollar when she said she favors two more quarter-point interest rate cuts this year.
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.
