U.S. Dollar Index Futures Market News and Commentary
The dollar index (DXY00) on Wednesday moved up by +0.069 (+0.07%). Dec euro-fx futures (E6Z9) closed down by -0.0009 (-0.09%), and EUR/USD (^EURUSD) fell by -0.0005 (-0.05%). Dec yen futures (J6Z9) closed down by -0.0008 (-0.08%), and USD/JPY (^USDJPY) rose +0.06 (+0.06%).
The dollar index moved higher Wednesday as heightened trade tensions between the U.S. and China undercut the yuan and as deflation concerns and dovish ECB commentary weighed on EUR/USD.
Trade tensions between the U.S. and China increased Wednesday, which knocked the yuan down to a 2-1/2 week low of 7.0410 yuan/USD, after the U.S. Senate late Tuesday night passed legislation supporting Hong Kong protesters and warned China against a violent suppression of the demonstrations. China responded by threatening unspecified retaliation if the bill becomes law. The markets are concerned that ongoing trade talks could be threatened because of the Senate bill. The yuan fell further Wednesday after the editor of... Read more