The DXY trims losses to trade at 101.77 following Fed Governor Waller's hawkish remarks, even as Brent crude slips toward its 200-day moving average of $93.85.
Hawkish comments from Fed Governor Waller, flagging a possible 50 basis-point hike in December, lifted the DXY back above water after Monday's 0.6% reversal, with session highs at 101.77. However, falling oil prices and recovering risk appetite are keeping the dollar on the defensive near support at 101.00-101.20. October CPI, due within the hour, lacks a year-on-year comparison, which may mute its market impact.
Brent crude slipped towards its 200-day moving average at $93.85 a barrel after President Trump downplayed the likelihood of renewed military strikes on Iran. The sharp decline in oil is boosting risk appetite and weighing on the dollar, suggesting continued selling pressure on crude in the near term.
The US Dollar Index (DXY) climbed to session highs of 101.77 on Tuesday, supported by hawkish comments from Fed Governor Christopher Waller regarding a potential 50 basis-point rate hike in December. Despite the recovery, the dollar remains under pressure as falling oil prices and improved risk appetite weigh on the currency ahead of the October CPI release.
Hawkish remarks by Fed Governor Waller about a possible 50 basis-point rate hike in December pushed the Dollar Index back into positive territory, though it is still under pressure from falling oil prices and improving risk appetite.
Possibly less than usual: the October report has no year-on-year comparison because last year's shutdown halted data collection, so the monthly figures are the only focus, with economists expecting headline and core at +0.20%.
President Trump downplayed the likelihood of renewed military strikes on Iran, reducing the geopolitical risk premium, and Brent slipped towards its 200-day moving average at $93.85 a barrel.