U.S. Dollar Index Futures Market News and Commentary
The dollar index (DXY00) on Monday fell -0.228 (-0.24%) to a 3-month low. September euro-fx futures (E6U9) closed up +0.0031 (+0.28%) at a 3-month high, and EUR/USD (^EURUSD) rose +0.0028 (+0.25%) to a 3-month high. September yen futures (J6U9) closed up +0.07 (+0.08%), and USD/JPY (^USDJPY) rose +0.03 (+0.03%). The dollar index fell Monday for a fourth consecutive session and posted a fresh 3-month low. The dollar continues to weaken on speculation the Fed will move to cut interest rates as soon as July, faster than other global central banks will move. A decline in T-note yields on Monday also weighed on the dollar since lower yields weaken the dollar's interest rate differentials. Another bearish factor was Monday's U.S. data that showed the Jun Dallas Fed manufacturing activity unexpectedly fell -6.8 to a 3-year low of -12.1, weaker than expectations of +3.3 to -2.0. A negative for EUR/USD was Monday's data that showed the German Jun IFO business climate index fell -0.5 to a 4-1/2 year low of 97.4.