US dollar gains ground amid sour market mood, Fed’s Beige Book

Due to sour market sentiment and the Fed’s Beige report, which revealed no material changes in economic activity since the September report, the US Dollar gained ground on Wednesday.

Although US housing starts from September disappointed, building permits performed better than anticipated. The US Dollar Index reached a high of 106.60 before settling close to 106.50, indicating solid support.

The September report on economic activity did not contain any surprises according to the Fed’s Beige book. The US economy is continuing to grow at a strong rate, and the short-term outlook is for “stable” or slightly slower growth.

Consumer spending was mixed, and labor market tightness continued to ease across the nation. The main global stock indexes are seeing sharp losses, and investors are seeking refuge in the USD.

Building Permits from the US from September were higher than expected but still lower than the previous 1.541M. US yields are slightly rising, with 2, 5, and 10-year rates rising to around 5.20%, 4.92%, and 4.91%, respectively.