Group 1: Dollar Index and Economic Indicators - The dollar index (DXY00) rose slightly by +0.02% on Monday, supported by stock market weakness and a stronger-than-expected November pending home sales report, which increased by +3.3% month-over-month against expectations of +0.9% [1][4] - The dollar faced downward pressure after the December Dallas Fed manufacturing outlook unexpectedly declined by -0.5 to -10.9, contrary to expectations of an increase to -6.0 [1][4] Group 2: Federal Reserve and Interest Rates - The markets are currently pricing in a 16% chance of a -25 basis point rate cut at the FOMC's next meeting scheduled for January 27-28, with expectations of a total -50 basis point cut by 2026 [2] - The Federal Reserve is increasing liquidity in the financial system by purchasing $40 billion a month in T-bills, which is contributing to the dollar's underlying weakness [3] Group 3: International Currency Movements - The euro (EUR/USD) fell by -0.03% on Monday due to a lack of progress in talks to resolve the Russian-Ukrainian war and lower Eurozone government bond yields, with the 10-year German bund yield dropping to a 3-week low of 2.824% [5] - The yen (USD/JPY) rose by +0.35% against the dollar, supported by indications from the December 19 BOJ meeting that further rate increases are likely due to Japan's low real interest rates [6]