THE US dollar edged higher over the week, up 0.48% to 96.1 largely due to a sharp weakening in the euro. Meanwhile, the US government shutdown has stretched to 27 days as both President Trump and the Democrats remained unwilling to back off from their stands over the border wall funding. The concerns on the continued shutdown have weighed slightly on the dollar.
By the end of the week, the dollar gradually lost momentum following speculations that the US government may consider easing tariffs on China, paving the way for investors to flock to risk assets. Meanwhile, data releases were rather limited for the week with only the Philadelphia Fed manufacturing data, which rose to 17 in January from 9.4 in December, while December’s Producer Price Index fell 0.2% month-on-month (m-o-m) from 0.1% m-o-m in November.
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