The dollar index (DXY00) on Tuesday fell by -0.12%. The dollar was under pressure on Tuesday due to the likelihood of a government shutdown on Wednesday. Also, comments from Fed Vice Chair Philip Jefferson on Tuesday hinted at the possibility of stagflation, a bearish factor for the dollar, as he warned that he sees a softening labor market and increasing inflation pressures. Finally, the larger-than-expected decline in the Conference Board US Sep consumer confidence index to a 5-month low weighed on the dollar. Losses in the dollar are limited after the Aug JOLTS job openings rose more than expected, a sign of strength in the labor market and a hawkish factor for Fed policy.
The US Jul S&P composite-20 home price index showed home prices rose +1.82% y/y, above expectations of +1.55% y/y, but still the slowest pace of increase in two years.
