The dollar index (DXY00) rose to a 1.5-week high today and is up by +0.12%.  Today's stock selloff has boosted liquidity demand for the dollar.  Also, hawkish comments from Fed Governor Lisa Cook supported the dollar when she said she now sees "risks as tilted toward higher inflation." The dollar fell back from its best levels on signs of weakness in the US labor market after Challenger's January job cuts posted their biggest decline for a January since 2009, weekly jobless claims rose more than expected ...

Economic Indicators - The dollar index (DXY) decreased by -0.08% after reaching a 17-month low in the November MNI Chicago PMI, indicating weaker economic activity [1] - US weekly initial unemployment claims fell by -6,000 to a 7-month low of 216,000, suggesting a stronger labor market than anticipated [3] - September capital goods new orders, excluding defense and aircraft, increased by +0.9% month-over-month, surpassing expectations of +0.3% [3] - The November MNI Chicago PMI dropped by -7.5 to 36.3, marking the steepest contraction in 17 months and falling short of expectations of 43.6 [3] Federal Reserve Outlook - The Fed Beige Book presented mixed signals, with some contacts expressing concerns about slower activity while others showed optimism among manufacturers [4] - Markets are pricing in an 80% probability of a 25 basis point cut in the fed funds target range at the upcoming FOMC meeting on December 9-10 [4] Eurozone Developments - The EUR/USD pair rose to a 1-week high, increasing by +0.23%, driven by comments from ECB Governing Council member Boris Vujcic regarding balanced risks to economic growth and inflation [5] - Uncertainty surrounding the Russian-Ukrainian peace plan is limiting euro gains, as European Commission Vice President Kallas indicated a lack of signs from Russia indicating a desire for peace [6] - Swaps are pricing in a 1% chance of a 25 basis point rate cut by the ECB at the December 18 policy meeting [6] Potential Leadership Changes - The dollar is under pressure due to reports that Kevin Hassett is a leading candidate to replace Jerome Powell as US Fed Chair, with his dovish stance potentially being bearish for the dollar [2]