The US dollar index is gaining ground on Tuesday after having plunged to a near 14 month low recently as Fed is seen on a rate cutting spree. The yield on the US 10-year Treasury note extended gains to approach 3.78%, the highest level since the beginning of September, after S&P Global PMIs continued to point to a robust although slowing growth in the US private sector. The expansion was led by services while the contraction in the manufacturing deepened. Manufacturing PMI unexpectedly declined to 47.0, while the services PMI expanded at a better-than-projected 55.4. Among Fed speakers overnight, Fed’s Goolsbee stated that rates need to come down adding that many more rate cuts will be needed. On the other hand, Minneapolis Fed President Neel Kashkari stated that the Federal Reserve is still focused on data to guide its decisions while Bostic commented that the recent half-point rate cut doesnt establish a pattern for future cuts, also noting that risks to the labor market have .
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