The dollar index (DXY00) today is up by +0.27%. The dollar today is moderately higher on weakness in the yen after the BOJ refrained from tightening monetary policy. Also, the weakness in stocks today has boosted some liquidity demand for the dollar. In addition, higher T-note yields today have strengthened the dollar’s interest rate differentials.
The markets are discounting the chances at 100% for a -25 bp rate cut at the November 6-7 FOMC meeting and a 38% chance for a -50 bp rate cut at that meeting.
