There isn’t a big catalyst for the dollar strength today but here are some reasons:
Strong US wholesale data and PPI
Trouble in emerging markets, especially Turkey
It’s weathered the trade war rhetoric and news remarkably well
Add another one to the list — the US Senate just passed a symbolic motion to back a role for Congress in reviewing tariffs based on national security grounds. The vote was an overwhelming 88-11 and suggests Congress might one day stand up to Trump on trade (some of their donors would certainly like that).
Tomorrow is CPI day and that will be a major mover but for now it’s a one-way street for the dollar.
Trader Aleksandar Kumanov