The dollar index (DXY00) this morning is slightly lower but remains above Thursday’s 3-week low. The dollar is under pressure today from the rally in the S&P 500 to a new record high, which has curbed liquidity demand for the dollar. Lower T-note yields today are also undercutting the dollar.
The markets are discounting the chances for a -25 bp rate cut at 2% for the March 19-20 FOMC meeting and 25% for the following meeting on April 30-May 1.
