The dollar index (DXY00) Tuesday rose by +0.23%. Higher T-note yields on Tuesday supported moderate gains in the dollar. Also, a downward revision to US Q3 unit labor costs supported the dollar. In addition, Tuesday’s slump in the Canadian dollar (^USDCAD) to a 4-1/2 year low boosted the dollar.
US Q3 nonfarm productivity was +2.2%, unrevised from the original report. However, Q3 unit labor costs were revised downward to +0.8% from the previously reported +1.9%, weaker than expectations of +1.3%.
