The dollar index (DXY00) Monday rose by +0.45%. The dollar Monday recovered from overnight losses and rallied moderately on hawkish comments from Fed Governor Bowman that reduced chances for a -50 bp rate cut at the November FOMC meeting when she said core inflation remains "uncomfortably" above the Fed's 2% target. Also, Monday’s better-than-expected US Chicago PMI and Dallas Fed manufacturing reports supported the dollar. Gains in the dollar accelerated Monday afternoon based on hawkish comments from Fed Chair Powell, who said the FOMC is in no hurry to cut interest rates.
The US Sep MNI Chicago PMI unexpectedly rose +0.5 to 46.6, stronger than expectations of -0.1 to 46.0.
