Dollar rally stalls on talk of more dovish Fed chair


Last month policymakers pointed to one more rate hike later this year and three for the next year after the conclusion of a two-day policy meeting.

OUT OF OFFICE: Office Depot plunged after it said it wants to broaden its business beyond traditional office products and announced a $1 billion purchase of CompuCom Systems, an IT services and products provider.

Office Depot also cut its forecast for how much operating profit it expects to earn this year. But they fell even further after President Donald Trump suggested in an interview with Fox News that the federal government may "wipe out" the debt.

Dow e-minis were up 46 points, or 0.21 percent, with 16,420 contracts changing hands.

Federal Reserve Bank of Dallas President Robert Kaplan scheduled to participate in a moderated Q&A session hosted by the Dallas Federal Reserve at 2:00 p.m ET.

The next Chair of the Fed will be incredibly important as they will likely determine the pace of future interest rate rises - any increase in the pace of rate rises would be all-out bullish for the Dollar. The weakness in the dollar arose after a final list of Fed candidates was given to Trump according to sources familiar with the matter, with markets pricing in that the dovish Fed Governor, Jerome Powell, who has been recommended as a candidate, could be the next Fed Chair after the term of the current Fed chief, Janet Yellen, expires in February.

News out of the US central bank is set to dominate sentiment Wednesday, as a leading Fed member is set to speak at a conference in St. Louis, Missouri.

Bond prices move inversely to yields.

Regarding energy markets, oil prices were pressured despite the weekly API report on United States crude stock inventories showing that U.S. inventories declined by 4.079mn barrels in the week ending September 29 compared to a reduction of 0.761mn barrels seen previously.

Gold has improved against Dollars overnight to now trade around $1,276.

MARKETS ABROAD: In Europe, France's CAC 40 fell 0.1 percent, Germany's DAX gained 0.5 percent and the FTSE 100 in London was close to flat. The USD/JPY is down 0.36% and trading at 112.47 Yen, off the session low of 112.40 Yen.

In Asia, Japan's Nikkei 225 added 0.1 percent, and the Hang Seng in Hong Kong climbed 0.7 percent.