Gold Futures Market News and Commentary
The dollar index (DXY00) on Monday rose by +0.33%. The dollar Monday recovered from early losses and posted moderate gains. A slump in stocks Monday fueled liquidity demand for the dollar. Also, higher T-note yields Monday strengthened the dollar’s interest rate differentials. The dollar Monday initially moved lower on expectations for the Fed on Wednesday to slow its pace of rate hikes to 25 bp from 50 bp last month and 75 bp in November.
Monday’s U.S. economic news supported the dollar after the Jan Dallas Fed manufacturing outlook level of general business activity rose +11.6 to an 8-month high of -8.4, stronger than expectations of -15.0.
EUR/USD (^EURUSD) on Monday fell by -0.18%. The euro Monday gave up an early advance and fell moderately after a rebound in the dollar sparked long liquidation in the euro. Also, Monday’s economic news showed the German economy unexpectedly contracted last quarter, which was bearish for the euro. EUR/USD on Monday initially m... Read more