“`html
The dollar index (DXY00) rose by +0.22% today, supported by higher T-note yields and a weakening British pound, which fell to a two-week low after the UK’s August government borrowing exceeded estimates. Minneapolis Fed President Neel Kashkari indicated he expects two additional Fed rate cuts this year, contributing to a mixed outlook for the dollar.
Market expectations now indicate a 91% chance of a 25 basis point rate cut at the upcoming FOMC meeting scheduled for October 28-29. Additionally, the euro (EUR/USD) is down by -0.25% due to deflation concerns, with Germany’s August producer prices showing a year-on-year decline of -2.2%, the largest in 15 months.
In Japan, the yen (USD/JPY) is slightly up, despite Japan’s August national CPI rising by +2.7% year-on-year, below expectations. The Bank of Japan maintained the overnight rate at 0.50% and announced plans to reduce its ETF holdings. Global precious metals also saw gains, with December gold up by +15.40 (+0.42%) as demand increased amid central bank uncertainty.
“`
