The dollar index (DXY00) today is up +0.36%. The dollar is higher after the stronger-than-expected US payroll report of +147,000 suggested continued strength in the US economy. The dollar is also seeing support from improved interest rate differentials, with the 10-year T-note moving higher by +5 bp. The dollar also has support as the market cut the chances for a Fed rate cut at the upcoming July 29-30 meeting to 6% from 23% on Wednesday.
By contrast, the dollar is being undercut by reduced safe-haven demand with today's rally in stocks. Also, today's US trade deficit was mildly bearish for the dollar.
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