The dollar index (DXY00) rallied to a 1.75-month high today and is up +0.56%. The dollar has support today after the OECD raised its 2026 US GDP forecast and lowered its US inflation forecast. The dollar also has support on speculation that the Fed may keep tightening monetary policy after Fed Governor Michael Barr said, "further policy adjustments by the Fed are likely to be needed to ensure inflation comes down to target in a timely fashion." The dollar added to its gains today on signs of US economic strength after the Sep S&P manufacturing PMI unexpectedly expanded at the fastest pace in 4.25 years.
US MBA mortgage applications fell -1.5% in the week ended September 18, with the purchase mortgage sub-index down -0.8% and the refinancing mortgage sub-index down -2.6%. The average 30-year fixed-rate mortgage rose +15 bp to a 2.25-year high of 7.12% from 6.97% in the prior week.
