Encouraged by the Federal Reserve's rate cut and its T-bill purchases, the dollar was sold. The Dollar Index fell for the fourth week in the past five. Leaving aside the Bank of England, which will most likely cut rates in the week ahead, the easing cycle of most of the other G10 central banks appears complete. The median dot in the Fed's new Summary of Economic Projections remained at one cut next year, while the market, perhaps with eye toward the personnel changes, anticipates at least two cuts next year. We have anticipated this divergence in the trajectory of monetary policy, which has driven our dollar bearish ... (full story)