The dollar index (DXY00) on Monday was little changed. The dollar was undercut by reduced safe-haven demand after Israel launched a limited retaliatory strike against Iran, reducing the chances for an all-out Middle East conflagration. However, the dollar saw underlying support from Monday’s +3.4 bp rise in the 10-year T-note yield. The markets are discounting the chances at 95% for a -25 bp rate cut at the November 6-7 FOMC meeting and at 0% for a -50 bp rate cut at that meeting. EUR/USD ([^EURUSD](https://www.barchart.com/forex/quotes/%5EEURUSD/overview)) on Monday rose by +0.17%. In a suppo…