The dollar index (DXY00) on Monday fell by -1.075 (-1.04%).  The dollar index Monday tumbled to a 3-1/2 week low as a sharp rally in stocks reduced the liquidity demand for the dollar. 

The dollar was also under pressure Monday when the yuan rallied to a 2-week high today against the dollar after President Biden said he would reconsider the tariffs on Chinese imports imposed by the Trump administration.  In addition, a rally in EUR/USD to a 3-1/2 week high also undercut the dollar as the euro strengthened on positive Eurozone economic data and hawkish comments from ECB President Lagarde. 

Atlanta Fed President Bostic said he is comfortable with 50 bp interest rate hikes in the next couple of FOMC meetings, but he's open to moving more aggressively "if inflation on a month-to-month basis is not falling."

The U.S. Apr Chicago Fed national activity index rose +0.11 to 0.47, weaker than expectations of 0.50.

EUR/USD (^EURUSD) on Monday rose by +0.0120 (+1.14%). ... Read more