The dollar index (DXY00) on Wednesday rose by +0.65% and posted a 1.5-week high. The dollar rose on Wednesday, with positive carryover from Tuesday, when Fed Chair Powell offered no hints on whether he would support a rate cut at next month's FOMC meeting, signaling that the Fed may be less dovish than the markets have currently priced in. Also, hawkish comments from Chicago Fed President Austan Goolsbee supported the dollar when he said he could be less willing to support further Fed rate cuts. The dollar extended its gains today after US Aug new home sales unexpectedly jumped to a 3.5-year high.
US Aug new home sales unexpectedly jumped +20.5% m/m to a 3.5-year high of 800,000, versus expectations of a decline to 650,000.
