The dollar index (DXY00) Wednesday fell by -0.03%. The dollar Wednesday gave up an early advance and turned lower on weakness in US economic reports that showed the Nov ADP employment change rose less than expected and the Nov ISM services index fell more than expected.
The dollar today initially moved higher on weakness in the euro ahead of today’s no-confidence vote in France that could topple the government and throw the country into political turmoil. The dollar also found support from hawkish comments from St. Louis Fed President Musalem, who said the time is near for the Fed to slow or pause interest rate cuts. In addition, Fed Chair Powell's comments supported the dollar when he said the US economy is in "remarkably good shape." Finally, the Fed’s Beige Book was positive for the dollar as business contacts expressed optimism about demand prospects in the coming months.
