The dollar index (DXY00) on Wednesday rose by +0.34%. The dollar Wednesday rose moderately and found support on better-than-expected U.S. economic news on Oct retail sales and the Nov Empire manufacturing survey. Also, higher T-note yields on Wednesday benefited the dollar. Wednesday’s rally in stocks curbed liquidity demand for the dollar and limited the dollar’s gains.
Wednesday’s better-than-expected U.S. economic news was supportive of the dollar. Oct retail sales fell -0.1% m/m, a smaller decline than expectations of -0.3% m/m. Also, Oct retail sales ex-autos unexpectedly rose +0.1% m/m, stronger than expectations of a -0.2% m/m decline. In addition, the Nov Empire manufacturing survey general business conditions rose +13.7 to a 7-month high of 9.1, stronger than expectations of -3.0.
