The dollar index (DXY00) today is down by -0.25%. The dollar is lower today after weaker-than-expected US personal income and spending reports knocked T-note yields lower, a bearish factor for the dollar. Also, today’s benign US Aug core PCE deflator report boosted the chances for additional Fed interest rate cuts, which was negative for the dollar. The dollar recovered from its worst levels after the University of Michigan US Sep consumer sentiment index was revised upward to a 5-month high.
US Aug personal spending rose +0.2% m/m, slightly weaker than expectations of +0.3% m/m. Aug personal income rose +0.2% m/m, weaker than expectations of +0.4% m/m.
