US Dollar: Midterms and payrolls to test weak momentum – DBS

The Dollar Index slipped back below 102, notes DBS Group Research economist Philip Wee. The decline followed the 28 October FOMC meeting, with US GDP and PCE releases doing little to restore USD momentum. Falling 10-year Treasury yields and concerns about AI investment spending added to the pressure, he highlights. The 3 November midterm elections and 6 November nonfarm payrolls could test whether the Dollar remains weak.

Below 102: Dollar momentum fades ahead of key US tests

"The DXY Index slipped back below 102 again after the October 28 FOMC meeting."

"Subsequent US GDP and PCE inflation releases did little to restore the USD’s momentum."

"The US Treasury 10-year yield retreated below 5% towards 4.90%, as the equity sell-off drove demand for safety."

"Concerns over cash burn at AI hyperscalers sharpened scrutiny of the investment boom underpinning the US exceptionalism narrative."

"The US midterm elections on November 3 and nonfarm payrolls on November 6 will test whether the USD’s loss of momentum extends."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)