Eurodollar Futures Market News and Commentary
The dollar index (DXY00) on Monday rose +0.089 (+0.10%). EUR/USD (^EURUSD) fell -0.0001 (-0.01%). USD/JPY (^USDJPY) fell -0.57 (-0.57%). The dollar index on Monday rallied to a 4-week high. A sell-off in global stocks on Monday boosted the liquidity demand for the dollar. Gains in the dollar were limited by lower T-note yields.
EUR/USD (^EURUSD) on Monday fell to a 4-week low but finished the day little changed. Dollar strength on Monday undercut EUR/USD along with dovish comments from ECB Executive Board member Schnabel, who said the ECB "is still more concerned about inflation being too low rather than too high." The euro recovered most of its losses on rising producer prices in Germany, which is hawkish for ECB policy. German Aug PPI rose +1.5% m/m and +12.0% y/y, stronger than expectations of +0.8% m/m and +11.1% y/y, with the +12.0% y/y gain being the largest since the data series began in 1977.
USD/JPY (^USDJPY) on Monday fell moderately. The yen moved hi... Read more