The dollar index (DXY00) on Tuesday rose by +0.01%. The dollar Tuesday gave up an early advance and was little changed. Signs of strength in the U.S. economy boosted T-note yields and the dollar on Tuesday’s stronger-than-expected U.S. retail sales and manufacturing production reports. Also, the weakness in stocks on Tuesday boosted the liquidity demand for the dollar. However, the dollar gave up its gains on dovish comments from Richmond Fed President Barkin, who signaled his support for a pause in Fed rate hikes.
Tuesday’s U.S. economic news was mostly better than expected and supported the dollar. Sep retail sales rose +0.7% m/m and +0.6% m/m ex-autos, stronger than expectations of +0.3% m/m and +0.2% m/m ex-autos. Also, Sep manufacturing production rose +0.4% m/m, stronger than expectations of unchanged m/m. On the negative side, the Oct NAHB housing market index fell -4 to a 9-month low of 40, weaker than expectations of 44.
