Gold Micro Futures Market News and Commentary
The dollar index (DXY00) on Monday rose by +0.84%. Weakness in the Chinese yuan was positive for the dollar as the yuan fell to a 1-1/2 week low against the dollar after the PBOC Monday unexpectedly lowered interest rates. Also, signs of weakness in the global economy boosted safe-haven demand for the dollar after Monday’s Chinese economic data was weaker than expected. However, gains in the dollar were contained Monday due to weaker-than-expected U.S. economic data and lower T-note yields.
U.S. economic data Monday was bearish for the dollar. Aug Empire manufacturing survey general business conditions plunged -42.2 to -31.3, weaker than expectations of 5.0 and the steepest pace of contraction in 2-1/4 years. Also, the Aug NAHB housing market index fell -6 to a 2-1/4 year low of 49, weaker than expectations of 54.
The Peoples Bank of China (PBOC) unexpectedly cut its 7-day reverse repurchase rate by 10 bp to 2.00% and cut its 1-year medium-term lending facility rat... Read more