U.S. Dollar Index Futures Market News and Commentary
The dollar index (DXY00) on Monday rose +0.136 (+0.14%). Sep euro-fx futures (E6U9) closed down -0.0013 (-0.11%), and EUR/USD (^EURUSD) fell -0.0013 (-0.12%). Sep yen futures (J6U9) closed down -0.08 (-0.08%), and USD/JPY (^USDJPY) rose +0.01 (+0.01%). The dollar index moved higher Monday on weakness in EUR/USD along with stronger-than-expected U.S. economic data. EUR/USD was undercut by the German Economy Ministry's monthly report on Monday that said manufacturing in Germany, Europe's biggest economy, remains sluggish and that a weak level of orders and deteriorating business sentiment suggest manufacturing weakness will persist. Monday's U.S. economic data showed the July Empire manufacturing index rose +12.9 to 4.2, stronger than expectations of +10.6 to 2.0, which is hawkish for Fed policy. USD/JPY rose slightly Monday after a rally in Sep E-Mini U.S. stock futures to a new all-time nearest-futures high diminished safe-haven demand for the yen. The dollar continues to be undercut by last week's dovish commentary by Fed Chair Powell and by expectations that the Fed will cut interest rates at the July 30-31 FOMC meeting.