The dollar index (DXY00) today is up by +0.09%.  The dollar is slightly higher today, following the end of the partial US government shutdown after President Trump late Tuesday signed a deal to fund the government.  Also, weakness in stocks today has boosted some liquidity demand for the dollar.  In addition, yen weakness is supportive of the dollar after the yen fell to a 1.5-week low today.  The dollar maintained modest gains on the stronger-than-expected Jan ISM services index. Gains in the dollar are ...

Economic Indicators - The US Q2 GDP was revised upward to +3.8% (quarter-over-quarter annualized), exceeding expectations of no change at +3.3% [2] - Q2 personal consumption was also revised upward to +2.5%, stronger than the expected +1.7% [2] - The Q2 core PCE price index was unexpectedly revised upward to +2.6%, surpassing expectations of no change at +2.5% [2] Labor Market - Weekly initial unemployment claims fell by -14,000 to a 2-month low of 218,000, indicating a stronger labor market than the anticipated increase to 233,000 [3] - Kansas City Fed President Jeff Schmid noted that the labor market remains largely in balance despite signs of cooling [4] Capital Spending - August core capital goods new orders (excluding defense and aircraft) rose by +0.6% month-over-month, stronger than expectations of no change [3] Federal Reserve Policy - Comments from Kansas City Fed President Jeff Schmid suggest that the Fed may not need to lower interest rates soon, maintaining a "slightly restrictive" policy stance to combat high inflation [4] - Markets are pricing in an 86% chance of a -25 basis point rate cut at the next FOMC meeting on October 28-29 [4] Currency Market - The dollar index rose by +0.64% to a 3-week high, driven by hawkish US economic reports and comments from Fed officials [1] - The EUR/USD fell by -0.65% to a 3-week low, influenced by the dollar's strength and geopolitical tensions between Russia and NATO [5]