Puzzle made of money by Qimono via Pixabay
The dollar index (DXY00) on Monday fell by -0.09%. The dollar posted modest losses on Monday ahead of Tuesday’s US Nov payrolls report. The dollar came under pressure on Monday after the Dec Empire manufacturing survey of general business conditions unexpectedly contracted, a dovish factor for Fed policy. The dollar dropped to its low after Fed Governor Stephen Miran said the Fed’s policy stance is unnecessarily restrictive on the economy. The dollar recovered from its worst level after stocks declined, boosting liquidity demand for the dollar.
The dollar is also under pressure as the Fed boosts liquidity in the financial system and began purchasing $40 billion a month in T-bills effective last Friday. Finally, the dollar is also being undercut by concerns that President Trump intends to appoint a dovish Fed Chair, which…
