The dollar index (DXY00) on Wednesday rose by +0.65% and posted a 2-week high. The dollar rallied on Wednesday after the Bureau of Labor Statistics (BLS) canceled the publication of the Oct employment report, which removes key data before next month's FOMC meeting and lowers the chances of a Fed rate cut. The dollar raced to its high on Wednesday afternoon on the hawkish minutes of the October 28-29 FOMC meeting, which stated that "many" Fed officials favored keeping interest rates steady for the remainder of the year.
Weakness in the yen also supported the dollar as the yen tumbled to a 9.75-month low on concern that the Japanese government would support a stimulus package that would substantially increase Japan's debt burden. Wednesday's US trade news was also bullish for the dollar after the Aug trade deficit narrowed more than expected.
