The dollar index (DXY00) on Wednesday gave up an early advance and finished down by -0.08%. The dollar fell slightly on Wednesday after the Nov MNI Chicago PMI posted a 17-month low. Also, strength in stocks on Wednesday has curbed liquidity demand for the dollar. The dollar initially moved higher on Wednesday on better-than-expected US economic news, with weekly jobless claims unexpectedly falling to a 7-month low and Sep capital goods new orders rising more than expected.
The dollar is also under pressure after Bloomberg reported that Kevin Hassett is leading the list of potential next US Fed Chair candidates to replace Jerome Powell. Hassett's nomination would be bearish for the dollar as he is seen as a dovish candidate. Also, Fed independence would come into question, as Hassett supports President Trump's approach to cutting interest rates at the Fed, which Trump has long sought to control.
