The dollar index (DXY00) today is up slightly by +0.05%. Higher T-note yields today are supportive of the dollar as the 10-year T-note yield rose to a 1.5-week high at 4.11%. Also, today’s action by the OECD to boost its US 2025 GDP forecast was supportive for the dollar. Strength in stocks today is limiting gains in the dollar as it reduces liquidity demand for the dollar.
The dollar is being undercut by expectations for a rate cut at next week’s FOMC meeting, as the swaps market now discounts a 96% chance of a rate cut at the Dec 9-10 FOMC meeting.
