The dollar index (DXY00) today is up by +0.13%. The dollar today recovered from a 3-week low and is moderately higher on weakness in the euro and British pound. The euro fell to a 4-week low on dovish ECB comments, and the British pound fell to a 3-1/2 week low after the BOE cut interest rates.
Gains in the dollar are contained due to today’s stock rally, which curbs liquidity demand for the dollar. Also, today’s Fed-friendly US economic reports on weekly initial unemployment claims, Q2 nonfarm productivity, and the Jul ISM manufacturing index knocked the 10-year T-note down to a 6-month low and weighed on the dollar. The dollar also has a negative carryover from Wednesday when Fed Chair Powell said a Fed rate cut "could be" on the table at the September FOMC meeting.
