At 15:55 GMT, DXY is trading 99.992, up 0.395 or +0.40%.
Fed Split Raises the Stakes for Dollar Traders
The October 28–29 meeting exposed an unusual level of disagreement inside the Fed, with dissents on both sides of the policy debate. The committee’s cut to the 3.75%–4.00% range was overshadowed by Powell’s reminder that another move in December is “far from” assured. When policymakers lack consensus, traders hesitate to price an aggressive easing path, which often supports the dollar.
The data blackout during the meeting forced officials to rely on alternative sources, contributing to caution about continuing to trim rates. Powell’s signal that some members prefer to “wait a cycle” reinforced that hesitation. With traders assigning roughly 50% odds to a December cut, uncertainty around the next step keeps a firm foundation under the DXY.
Yen Slide and G10 Softness Extend Support for the Greenback
The yen’s drop to a 10-month low has fed into broad dollar strength. Japan’s push for a large fiscal package paired with a preference for low interest rates has discouraged safe-haven demand for the currency, even during global equity pressure. Government comments referencing “urgency” did little to slow the retreat.
Sterling fell after UK CPI eased to 3.6%, reinforcing expectations for a December BoE cut. The Australian and New Zealand dollars also weakened, adding to cross-currency support for the dollar.
Steady Treasury Yields Keep Dollar Buyers Confident
U.S. yields held firm, with the 10-year near 4.11%, as markets waited for the Fed minutes and Thursday’s major labor release. Stable yields help support the dollar by maintaining relative returns, especially during risk-off trading linked to equity pressure in the chip sector.
