Silver Futures Market News and Commentary
The dollar index (DXY00) on Wednesday fell by -0.07% but stayed above Tuesday’s 2-week low. On Wednesday, the dollar posted modest losses after the weekly MBA mortgage applications report showed the average 30-year fixed mortgage rate rose above 7% for the first time in 2 months, a negative factor for housing and the U.S. economy.
Losses in the dollar were limited by hawkish comments from Fed Governor Bowman and Richmond Fed President Barkin and the hawkish minutes of the Jan 30-31 FOMC meeting. Weakness in stocks on Wednesday also boosted some liquidity demand for the dollar.
U.S. weekly MBA mortgage applications fell -10.6% in the week ended Feb 16. The home purchase sub-index fell -10.1% to a 3-month low, and the refinancing sub-index fell -11.4%. The average 30-year fixed rate mortgage rose +19 bp to a 2-month high of 7.06% from 6.87% the prior week.
Fed Governor Bowman said that with the current economic environment, the time for an interest rate cut by t... Read more