Dollar Moves Higher on Yen Weakness and Fed Comments

Group 1 - The dollar index (DXY00) reached a 1-week high, increasing by +0.19% due to yen weakness and positive comments from New York Fed President John Williams [1] - The dollar is facing pressure from the Federal Reserve's liquidity boost, with a monthly purchase of $40 billion in T-bills starting last Friday [2] - Concerns about President Trump's potential appointment of a dovish Fed Chair are negatively impacting the dollar, with Kevin Hassett being the likely candidate [2] Group 2 - US existing home sales in November increased by +0.5% month-over-month to a 9-month high of 4.13 million, although it fell short of the expected 4.15 million [3] - The University of Michigan's US December consumer sentiment index was unexpectedly revised down by -0.4 to 52.9, contrary to expectations of an upward revision [3] - The 1-year inflation expectations for December were revised upward to 4.2% from 4.1%, indicating rising inflation concerns [3] Group 3 - New York Fed President John Williams expressed optimism about economic data, projecting US GDP growth of 1.5% to 1.75% for this year, with no immediate need for further monetary policy action [4] - The market is pricing in a 22% chance of a 25 basis point cut in the fed funds target range at the upcoming FOMC meeting on January 27-28 [4]