Euro FX Futures Market News and Commentary
The dollar index (DXY00) on Wednesday rose +0.213 (+0.21%). Mar euro-fx futures (E6H0) closed up +0.0011 (+0.10%), and EUR/USD (^EURUSD) rose +0.0014 (+0.13%). Mar yen futures (J6H0) closed down -1.40 (-1.54%), and USD/JPY (^USDJPY) rose +1.51 (+1.37%).
The dollar index surged to a 2-3/4 year high Wednesday on (1) stronger-than-expected U.S. economic data, and (2) weakness in the yen after stocks rallied on signs that China will boost stimulus measures.
Wednesday's U.S. economic data was supportive for the dollar. The Jan core PPI rose +0.5% m/m and +1.7% y/y, stronger than expectations of +0.2% m/m and +1.3% y/y. The +0.5% m/m gain was the largest monthly increase in 15 months. Also, Jan housing starts fell by only -3.6% to 1.567 million, stronger than expectations of -11.2% to 1.428 million. In addition, Jan building permits rose +9.2% to a 12-3/4 year high of 1.551 million, stronger than expectations of +2.1% to 1.450 million.
Wednesday's minutes of the Jan 2... Read more