Scrap #1 HMS Prepared Idx Futures Market News and Commentary
The dollar index (DXY00) on Friday fell to a 2-week low and finished down by -0.14%. The improving prospects for a US-Iran peace deal sparked a rally in stocks, reducing liquidity demand for the dollar. Also, Friday’s -1% fall in WTI crude oil to a 5-week low lowers inflation expectations and could prompt the Fed to ease monetary policy, a bearish factor for the dollar. Losses in the dollar were limited on Friday after the May MNI Chicago PMI rose more than expected at its strongest pace in 4.25 years. Fed comments on Friday were mixed for the dollar.
The US May MNI Chicago PMI rose +13.5 to 62.7, stronger than expectations of 50.3 and the strongest pace of expansion in 4.25 years.
San Francisco Fed President Mary Daly said Fed interest rate policy is in a good place and that she’s “cautiously optimistic” about the US economy, noting that “there’s no urgency to make an adjustment” to interest rates.
Kansas City Fed President Jeff Schmid said, “With inflation ru... Read more