The dollar index (DXY00) recovered from a 1.5-week low today and is up by +0.16%. The dollar is rallying on today's better-than-expected US Jan payroll report, which pushed T-note yields higher and dampened speculation of additional Fed interest rate cuts. The chance of a Fed rate cut at next month's FOMC meeting fell to 6% from 23% before the release of today's monthly payroll report. Hawkish comments today from Kansas City Fed President Jeff Schmid also supported the dollar when he said the Fed should hold rates at a "somewhat restrictive" level.
US MBA mortgage applications fell -0.3% in the week ended February 6, with the purchase mortgage sub-index down -2.4% and the refinancing mortgage sub-index up +1.2%. The average 30-year fixed mortgage rate was unchanged from the prior week at 6.21%.
