The dollar index (DXY00) this morning is down by -0.05%. The dollar today gave up early gains and turned lower on strength in the euro. The dollar initially moved higher today on carryover support from last Friday’s stronger-than-expected US March payroll report, which dampened expectations for Fed rate cuts. Also, higher T-note yields are supportive of the dollar as the 10-year T-note yield today climbed to a 4-1/2 month high.
The markets are discounting the chances for a -25 bp rate cut at 6% for the next FOMC meeting on April 30-May 1 and 52% for the following meeting on June 11-12.
