Euro FX Cash (E6Y00)

by cmdtyNewswires - Mon Jul 22, 2:54PM CDT
The dollar index (DXY00) on Monday rose by +0.133 (+0.14%). Sep euro-fx futures (E6U9) closed slightly lower by -0.00095 (-0.08%), and EUR/USD (^EURUSD) fell by -0.0011 (-0.10%). Sep yen futures (J6U9) closed slightly lower by -0.0008 (-0.09%), and USD/JPY (^USDJPY) rose by +0.152 (+0.14%). The dollar rallied mildly on Monday after the market last Friday dialed back expectations for a 50 bp rate cut next week due to the comment by St. Louis Fed President Bullard, the most dovish FOMC voter, that "a 25 bp rate cut by the Fed would be appropriate as the current situation doesn't warrant a larger rate cut." The dollar also saw support Monday from signs over the weekend that the US/Chinese trade talks may be getting back on track. China's official news agency on Sunday reported that Chinese companies are making inquiries about buying U.S. agriculture products and are applying for exemptions from tariffs on U.S. products. Meanwhile, EUR/USD saw some weakness on Monday ahead of Thursday's ECB meeting where the ECB is expected to soften its interest rate guidance to allow for a possible rate cut at its September meeting. GBP/USD fell mildly by -0.2% on Monday ahead of Tuesday's announcement of the new Conservative Party leader and Prime Minister, which is expected to be Boris Johnson. The new Prime Minister will take power on Wednesday, with the first order of business being to work out the oil-tanker standoff with Iran. Iran last Friday seized a UK-flagged oil tanker near the Strait of Hormuz as retaliation for the UK's seizure of an Iranian oil tanker in early July. The new UK Prime Minister has only three months to try to work out a Brexit solution before the October 31 deadline.