The dollar index (DXY00) Monday rose by +0.69%. The dollar rallied Monday and garnered support from weakness in the euro due to political turmoil in France after France’s far-right National Rally party said it would back a no-confidence vote against Prime Minister Barnier’s government due to a stand-off over France’s budget. Higher T-note yields on Monday are also supportive of the dollar. In addition, Monday’s rally in the S&P 500 to a new record high curbed liquidity demand for the dollar. The dollar extended its gains after Monday’s US economic news on Oct construction spending and Nov ISM manufacturing rose more than expected, hawkish factors for Fed policy.
The US Nov ISM manufacturing index rose +1.9 to a 5-month high of 48.4, stronger than expectations of 47.5.
