The dollar index (DXY00) Tuesday rose by +0.50%. Weakness in the yen supported the dollar as the yen Tuesday tumbled to a 1-year low against the dollar after the BOJ maintained record low-interest rates and reaffirmed its bond-buying program. Also, weaker-than-expected Eurozone economic news weighed on the euro to the dollar’s benefit. Gains in the dollar were limited by the likelihood that the Fed will keep its monetary policy unchanged at the Tue-Wed FOMC meeting.
Tuesday’s U.S. economic news was mixed for the dollar. On the supportive side, the Q3 employment cost index rose +1.1%, stronger than expectations of +1.0%. Also, the Aug S&P CoreLogic composite-20 home price index rose +2.16% y/y, stronger than expectations of +1.75% y/y and the biggest increase in 7 months. On the bearish side, the Conference Board U.S. Oct consumer confidence index fell -1.7 to a 5-month low of 102.6. Also, the Oct MNI Chicago PMI unexpectedly fell -0.1 to 44.0, weaker than expectations of an increase to 45.0.
