The dollar index (DXY00) today is down by -0.61% at a 2-week low. The dollar is under pressure today after polls over the weekend shifted in favor of Democratic candidate Harris for president. Harris’ 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, lower T-note yields today have weakened the dollar’s interest rate differentials. In addition, expectations that the FOMC will cut interest rates by 25 bp on Wednesday are undercutting the dollar.
US Sep factory orders fell -0.5% m/m, which is right on expectations.
