South African Rand Futures Market News and Commentary
The dollar index (DXY00) on Tuesday fell -0.157 (-0.16%). Sep euro-fx futures (E6U0) closed up +0.0040 (+0.35%), and EUR/USD (^EURUSD) rose +0.0048 (+0.42%). Sep yen futures (J6U0) closed up +0.05 (+0.06%), and USD/JPY (^USDJPY) fell -0.06 (-0.06%).
The dollar index on Tuesday gave up early gains and fell to a new 1-month low. A recovery in stocks on Tuesday undercut liquidity demand for dollars. Also, strength in EUR/USD pressured the dollar on optimism the EU will agree on a proposed 750 billion-euro coronavirus recovery plan when it meets on Friday. The dollar found early support Tuesday on the stronger-than-expected U.S. June CPI report.
The dollar extended its losses Tuesday afternoon after comments from Fed Governor Brainard suggested she favors expanding Fed stimulus measures, saying, "a thick fog of uncertainty still surrounds us, and downside risks predominate. Looking ahead, it likely will be appropriate to shift the focus of monetary policy from stabilizatio... Read more