The dollar is higher for the third consecutive day, lifting the Dollar Index by 0.26% to trade at 105.814. Despite the three days of gains, the dollar has still not fully recovered from Friday’s 1.04% decline that was sparked by October’s Nonfarm Payrolls surprise drop.
The dollar’s upside potential looks limited by overhanging near resistance near 106.25 and higher at 107.00. Dollar bears will likely use the dollar’s rally to initiate short dollar positions at more favorable levels.
Dollar gains are led by a 0.40% advance vs. JPY, lifting the USDJPY to a 6-day high and bringing it within striking distance of a new multi-year high. The dollar is +0.34% vs. EUR, +0.33% vs. GBP, +0.25% vs. NZD, and several sub-0.25% gains vs. the remaining G10 currencies.
U.S. Treasury yields are fractionally higher in the mid-curve tenors. Fed Chairman Powell is scheduled to speak at 9:15am ET and traders are hedging against the possibility of Powell pushing back hopes of mid-2024 rate cuts.
Oil is lower by 0.78% today and is now -15.39% since the October 20 high at $90.78/barrel.
The average 30-year fixed mortgage rate has dropped to 7.61%, its lowest level since late September after peaking at 8.09% on October 25th.