The dollar index (DXY00) on Wednesday rose by +0.03%.  The dollar found support on Wednesday on an increase in safe-haven demand from an escalation of geopolitical risks in Europe after Poland shot down Russian drones that had entered its airspace.  However, the dollar gave up most of its advance after bond yields declined on a weaker-than-expected US Aug PPI report, which cemented expectations for at least a 25 bp rate cut by the Fed at next week’s FOMC meeting.  The forex markets now await the key US CPI ...

The dollar index (DXY00) today recovered from a 1.5-month low and is up by +0.08%.  Higher T-note yields today strengthened the dollar's interest rate differentials and sparked short covering in the dollar.  The dollar today initially whipsawed lower and then higher after preliminary benchmark payroll revisions to US payrolls in the year through March 2025 showed fewer jobs than previously stated.  Limiting the upside in the dollar are the increased expectations for Fed easing through year-end. The dolla ...