The dollar index (DXY00) dropped to a 2-week low on Tuesday and finished down by -0.79%.  The dollar retreated on Tuesday as President Trump's push to take over Greenland is reviving fears of trade confrontations between the US and its European allies, with little sign of de-escalation. Overnight, President Trump threatened steep tariffs on French champagne after French President Macron ruled out joining a US-led peace initiative.  There are also fears that rising tensions in Greenland could prompt Europe ...

The dollar index (DXY00) today is down by -0.32%.  Threats to Fed independence are hammering the dollar today after Fed Chair Powell said the Justice Department's threat of criminal charges against the Federal Reserve over his June testimony on Fed headquarters renovations is the consequence of the Fed not going along with President Trump's calls for lower interest rates. On Sunday, Fed Chair Powell said the Fed had been served grand jury subpoenas from the Justice Department threatening a criminal indic ...

The dollar index (DXY00) tumbled to a 1.75-month low today and is down by -0.55%.  The dollar is under pressure today on negative carryover from Wednesday after the FOMC cut the federal funds target range by -25 bp and said it would boost liquidity in the financial system and begin purchasing $40 billion a month in T-bills. The dollar added to its losses today after US weekly jobless claims rose more than expected to a 3-month high, a sign of labor market weakness that is dovish for Fed policy.  A suppor ...

Group 1: Dollar Index and Economic Indicators - The dollar index (DXY00) is down by -0.33% at a 2-week low, influenced by the strength of the yen and expectations of a Fed rate cut [1] - The US Nov ISM manufacturing index unexpectedly fell -0.5 to a 4-month low of 48.2, weaker than the expected increase to 49.0, indicating economic contraction [3] - The markets are pricing in a 100% chance of a 25 basis point cut in the fed funds target range at the upcoming FOMC meeting on December 9-10 [3] Group 2: Federal Reserve and Leadership Speculation - The dollar is under pressure due to speculation regarding Kevin Hassett as a potential candidate to succeed Jerome Powell as US Fed Chair, which is seen as bearish for the dollar [2] - Hassett's nomination could raise concerns about Fed independence, as he supports President Trump's approach to interest rate cuts [2] Group 3: Euro and ECB Policy - The EUR/USD is up by +0.32% at a 2-week high, supported by a weaker dollar and hawkish comments from ECB officials [4] - ECB Governing Council member Nagel stated that Eurozone interest rates are currently in a good place, indicating a divergence in central bank policies [4][5] - The Eurozone Nov S&P manufacturing PMI was revised downward by -0.1 to 49.6, marking the steepest pace of contraction in 5 months [5]