U.S. Dollar/British Pound Futures Market News and Commentary
The dollar index (DXY00) on Monday rose +0.069 (+0.07%). Mar euro-fx futures (E6H0) closed down -0.0016 (-0.14), and EUR/USD (^EURUSD) rose +0.0002 (+0.02%). Mar yen futures (J6H0) closed up +0.69 (+0.77%), and USD/JPY (^USDJPY) fell -0.82 (-0.73%).
The dollar index posted modest gains Monday as it consolidates just below last Thursday's 2-3/4 year high. The dollar index on Monday was boosted by flight-to-safety. However, the dollar was undercut by Monday's plunge in the 10-year T-note yield to a 3-1/2 year low of 1.351%, which weakened the dollar's interest rate differentials. Interest rates have fallen on concern that the spread of the China coronavirus will undercut global economic growth and may force the Fed to implement more rate cuts.
EUR/USD recovered from early losses Monday and moved slightly higher. EUR/USD was under pressure early Monday on Sunday's comments from ECB Governing Council members. Speaking after the weekend G-20 meeting in Saudi Arabia, Bank of... Read more