The dollar index (DXY00) Monday fell by -0.40% and posted a 2-week low. The dollar was under pressure Monday after updated polls over the weekend shifted in favor of Democratic candidate Harris for president. Harris’s high-tax and low-tariff policies are seen as limiting growth and inflation and are seen as more negative for the dollar than Republican candidate Trump’s low-tax and high-tariff policies. Also, a decline in T-note yields on Monday weakened the dollar’s interest rate differentials. In addition, expectations that the FOMC will cut interest rates by 25 bp on Thursday undercut the dollar.
US Sep factory orders fell -0.5% m/m, which is right on expectations.
