Dollar Sees Support as T-note Yields Rise

Core Points - The dollar index is slightly higher due to a rise in the 10-year T-note yield and comments from Fed Chair Powell regarding interest rate cuts [1] - The US manufacturing PMI report was weaker than expected, contributing to bearish sentiment for the dollar [1][4] - Fed Governor Miran expressed concerns about the current restrictive monetary policy, suggesting it may be too tight [2] - The ongoing US government shutdown is putting pressure on the dollar, with a significant chance of interest rate cuts anticipated [3] - The Eurozone manufacturing PMI remained stable, while the ECB is not expected to cut rates further, contrasting with the Fed's anticipated cuts [5] Summary by Category Dollar Index and Interest Rates - The dollar index (DXY00) is trading slightly higher by +0.06%, supported by a +2.5 basis point rise in the 10-year T-note yield [1] - Markets are pricing in a 66% chance of a 25 basis point cut in the fed funds target range at the next FOMC meeting on December 9-10 [3] Manufacturing Data - The October ISM manufacturing index fell by -0.4 points to 48.7, below expectations [4] - The final-October S&P US manufacturing PMI was revised slightly higher by +0.3 points to 52.5, exceeding market expectations [4] Central Bank Commentary - Fed Governor Miran stated that the Fed's current policy is too restrictive and does not see a reason for maintaining such a stance [2] - The ECB is perceived to have completed its rate-cut cycle, contrasting with the Fed's expected rate cuts [5]