U.S. Dollar/Japanese Yen Futures Market News and Commentary
The dollar index (DXY00) on Wednesday rose by +0.458 (+0.44%). The dollar index Wednesday recovered from a 1-1/2 week low in overnight trade and rose moderately. A sharp sell-off in stocks Wednesday boosted the liquidity demand for the dollar. However, gains in the dollar were limited after T-notes yields fell and U.S. Apr housing starts fell more than expected.
On Wednesday, Chicago Fed President Evans said he sees a half-point interest rate increase when the FOMC meets next month and "probably thereafter." He also said that he expects the economy to cool as Fed policy gets restrictive.
U.S. Apr housing starts fell -0.2% m/m to 1.724 million, weaker than expectations of 1.756 million. Apr building permits, a proxy for future construction, fell -3.2% m/m to a 5-month low of 1.819 million, still above expectations of 1.814 million.
EUR/USD (^EURUSD) on Wednesday fell by -0.0078 (-0.74%). EUR/USD Wednesday fell back from a 1-week high and is moderately lower. ... Read more