The dollar index (DXY00) rallied to a 1.5-year high today and is up by +0.38%. The dollar is climbing today on increased safe-haven demand as political turmoil in France and Spain weighs on the euro. The dollar added to its gains today after the prices paid sub-index of the Sep ISM services index rose more than expected to a 4-year high, a hawkish factor for Fed policy.
Gains in the dollar are limited, with WTI crude oil down more than -1%, which eases inflation expectations that could persuade the Fed to ease monetary policy, a negative factor for the dollar.
