Group 1 - The dollar index (DXY) fell slightly by -0.08% on Tuesday due to a decline in T-note yields and reduced liquidity demand for the dollar as stocks strengthened [1] - The swaps market indicates a 96% chance of a Fed rate cut at the upcoming FOMC meeting on December 9-10, which is bearish for the dollar [1][5] - The OECD raised its US 2025 GDP forecast to +2.0% from +1.8%, which provided some support for the dollar [2][4] Group 2 - President Trump is expected to announce his selection for the new Fed Chair in early 2026, with Kevin Hassett seen as a likely candidate, which could be bearish for the dollar due to his dovish stance [3] - The euro (EUR/USD) rose by +0.12% as it recovered from early losses, supported by a stronger-than-expected Eurozone CPI and the OECD's raised Eurozone GDP estimate [6]
Dollar Fades as Bond Yields Fall and Stocks Climb
Yahoo Finance·2025-12-02 20:45