Dollar Supported by Better-Than-Expected US Economic News

Economic Indicators - The US October S&P Case-Shiller composite-20 home price index increased by +0.3% month-over-month and +1.3% year-over-year, surpassing expectations of +0.1% month-over-month and +1.1% year-over-year [2] - The US December MNI Chicago PMI rose by +9.2 to 43.5, exceeding expectations of 40.0 [3] Currency Market Dynamics - The dollar index (DXY00) is up by +0.09%, supported by positive US economic news and higher T-note yields, which have strengthened the dollar's interest rate differentials [1] - The dollar is facing pressure due to concerns about the Federal Reserve's independence following President Trump's comments about potentially firing Fed Chair Powell [1] - The dollar is also under pressure as the Fed has increased liquidity in the financial system by purchasing $40 billion a month in T-bills [4] Eurozone Economic Factors - The EUR/USD is down by -0.13%, influenced by the dollar's strength and ongoing concerns regarding the Russian-Ukrainian war, which has not seen any breakthroughs in recent talks [5] - Spain's December core CPI rose by +2.6% year-over-year, stronger than the expected +2.5% year-over-year, which is a hawkish factor for ECB policy [6]