U.S. Dollar Index Futures Market News and Commentary
The dollar index (DXY00) on Friday fell -0.188 (-0.20%). Dec euro-fx futures (E6Z0) closed up +0.0039 (+0.33%), and EUR/USD (^EURUSD) rose up +0.0046 (+0.39%). Dec yen futures (J6Z0) closed up +0.0036 (+0.38%), and USD/JPY (^USDJPY) fell -0.23 (-0.22%).
The dollar index on Friday fell to a fresh 2-3/4 month low. Strength in U.S. stock indexes on Friday curbed liquidity demand for the dollar. Also, lower T-note yields on Friday undercut the dollar since lower yields weakened the dollar's interest rate differentials. EUR/USD moved higher on better-than-expected Eurozone economic data. USD/JPY retreated after Reuters reported the BOJ would extend its corporate funding plans.
U.S. stock indexes on Friday pushed higher the entire day, which curbed liquidity demand for the dollar. Covid vaccine optimism boosted stock indexes along with less U.S. political uncertainty as President-elect Biden continues to form his transition team. Also, President Trump on... Read more