The US dollar index moved within a wide range of 0.86%, ending 0.68% higher in yesterday’s session. Yesterday was another negative day with US equities lower again (SPX -1.82%, Dow -2.21%, Nasdaq -1.7%). However, the story is different this morning: the US index is weaker due to US stocks looking poised to regain ground as market participants counterbalanced the late selloff.
The equity market pullback does underscore the uncertain outlook for what the Fed will do when they meet on December 19th, probably marking their fourth rate increase this year. According to The Wall Street Journal, Fed officials are divided over how many times the central bank will raise rates next year. Projections released after the Fed’s meeting in September showed officials are roughly equally split over whether the economy will require two, three, or four rate raises next year.
This morning, the core durable goods orders (monthly) were at 0.1% when the forecast was 0.4%; this is causing negative pressure on the US dollar.