Euro FX Futures Market News and Commentary
The dollar index (DXY00) on Tuesday fell -0.206 (-0.22%). EUR/USD (^EURUSD) rose +0.0019 (+0.16%). USD/JPY (^USDJPY) fell -0.64 (-0.58%). The dollar index on Tuesday fell to a 1-1/2 week low. The dollar was undercut by the decline in the 10-year T-note yield by -5.6 bp to 1.234%. The dollar was also under pressure on concern that the worsening of the pandemic in the U.S will lead to tighter restrictions that curb economic growth. A slump in stocks on Tuesday provided some support to the dollar on increased liquidity demand.
EUR/USD (^EURUSD) on Tuesday showed a modest gain. Dollar weakness on Tuesday was the main supportive factor for EUR/USD. A slight negative for EUR/USD was the +8.3% y/y increase in the Eurozone Jun M3 money supply, stronger than expectations of +8.2% y/y. USD/JPY (^USDJPY) on Tuesday posted moderate losses as the yen saw support from news that Japan’s PPI services prices index rose +1.4% y/y, slightly stronger than expectations of +1.3% y/y.
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