The US dollar index rose to a three-month high, with cooling interest rate cut expectations becoming the main driver.

On November 4, news broke that the US Dollar Index (DXY) broke through a key level, rising to its highest level in nearly three months, driven primarily by a significant cooling of market expectations for an "immediate further rate cut" by the US.

In the previous week, although the Federal Reserve lowered interest rates as the market widely expected, Fed Chairman Powell clearly stated in subsequent remarks that there is no certainty about whether to continue lowering rates in December, which directly strengthened the support for the US dollar.

Analysts at Monex Europe stated in their latest report that the current market environment continues to favor the US dollar: on one hand, the previous government shutdown in the US led to delays in the release of several official economic data, including the October non-farm payroll report, which is unlikely to be published as scheduled later this week. During this data gap, there is a lack of new negative news to suppress the dollar; on the other hand, market volatility remains low under information uncertainty, and the demand for the dollar as a safe haven and for allocation purposes remains robust, collectively pushing the dollar index higher #美联储政策预期与影响 .