U.S. Dollar Index Futures Market News and Commentary
The dollar index (DXY00) on Friday fell by -0.23%. On Friday, the dollar relinquished early gains and posted moderate losses on weak U.S. economic news and dovish Fed-speak. The Nov U.S. ISM manufacturing index contracted more than expected, a dovish factor for Fed policy. Losses in the dollar accelerated after Fed Chair Powell and Chicago Fed President Goolsbee signaled their support for the Fed to leave interest rates steady at the upcoming Dec 12-13 FOMC meeting.
Friday’s U.S. economic news was mixed for the dollar. On the bearish side, the Nov ISM manufacturing index was unchanged at 46.7, weaker than expectations of an increase to 47.8 and the 13th consecutive month of contraction in manufacturing activity. Conversely, Oct construction spending rose +0.6% m/m, stronger than expectations of +0.3% m/m.
Dovish Fed comments on Friday weighed on the dollar. Fed Chair Powell signaled the Fed will leave interest rates steady at the Dec 12-13 FOMC meeting when he said... Read more