The USD continues to trade within a tight range despite several factors: Treasury Secretary Mnuchin spooking markets by calling bank CEOs; Trump contemplating firing Powell; the government shutdown that doesn’t appear to have an end in sight; Mattis resigning with some parting shots; and, the Fed hiking rates while the market is in free fall.
The US dollar index had a rally, at one point of 0.54 percent amid the best day in US equity markets in nearly a decade yesterday, with the Dow Jones Industrial Average notching its largest one-day point gain in history. Rallies in retail and energy shares led the gains, as Wall Street recovered the steep losses suffered in the previous session.
This morning though, the recent trends were back once again with risk appetite on the weaker side across financial markets. The US dollar index is dropping 0.20 percent, nearly erasing its Boxing Day gains, while haven currencies such as the Japanese Yen and Swiss Franc are strengthening.