The dollar index (DXY00) today is down by -0.11%. The dollar is under pressure today as the Fed is expected to cut the fed funds target range by -25 bp at the conclusion of the Tue/Wed FOMC meeting. Also, today's rally in the S&P to a new record high has dampened liquidity demand for the dollar. In addition, increased expectations for Fed easing through year-end are bearish for the dollar. The dollar added to its losses today after the US Sep Empire manufacturing survey of general business conditions fell more than expected to a three-month low.
The dollar is also being undercut by concerns over Fed independence, which could prompt foreign investors to dump dollar assets as President Trump attempts to fire Fed Governor Cook, and by Stephen Miran's intention to be a Fed Governor while still technically holding his White House job on the Council of Economic Advisors.
