The dollar index (DXY00) today is down by -0.18% and posted a new 7-1/2 month low. Lower T-note yields today are weighing on the dollar. Also, the euro's strength is undercutting the dollar as EUR/USD rose to a 7-1/2 month high today. The dollar also has some negative carryover from Monday on dovish comments from San Francisco Fed President Daly and Minneapolis Fed President Kashkari, who signaled they would be open to a Fed rate cut at the September FOMC meeting.
The markets are discounting the chances at 100% for a -25 bp rate cut at the Sep 17-18 FOMC meeting and at 29% for a -50 bp rate cut at that meeting.
