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Barchart
Barchart
Rich Asplund

Dollar Sees Pressure from Reduced Middle East Risks

The dollar index (DXY00) today is down -0.03%.  The dollar today is being undercut by reduced safe-haven demand after Israel launched a limited retaliatory strike against Iran, reducing the chances for an all-out Middle East conflagration.  However, the dollar is seeing underlying support from today’s +1.6 bp rise in the 10-year T-note yield.

The markets are discounting the chances at 96% for a -25 bp rate cut at the November 6-7 FOMC meeting and at 0% for a -50 bp rate cut at that meeting.

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