The dollar index (DXY00) Monday fell mildly by -0.13% on slightly lower T-note yields.  The 10-year T-note yield on Monday fell by -1.9 bp to 3.715%. EUR/USD (^EURUSD) rose by +0.11% despite the weak German IFO report.Â
The German June IFO Business Climate index fell -3.0 points to 88.5 from May’s revised 91.5, weaker than expectations for a decline to 90.7. The June IFO current assessment index fell -1.1 points to 93.7, a bit stronger than expectations for a decline to 93.5. The June IFO expectations index fell by -4.7 points to 83.6, weaker than expectations for a decline to 88.1.
The dollar Monday failed to see much safe-haven demand from the Wagner Group’s aborted insurrection in Russia on Saturday.Â
USD/JPY (^USDJPY) fell -0.14%, with the yen seeing some support from verbal intervention after Japan’s top currency official Masato Kanda said the BOJ is watching the yen's weakness with a sense of urgency and won’t rule out intervention.
The Chinese yuan (CNY) on Monday fell -1% against the dollar to a 7-1/2 month low on weak Chinese economic news released over the weekend. Chinese holiday tourism data released over the weekend showed that domestic travel spending during the recent dragon-boat festival was lower than pre-pandemic levels, fueling the narrative that China’s post-lockdown boom is running out of steam. Also, Chinese passenger car sales in June fell -6% y/y, according to China’s Passenger Car Association. Separately, Chinese home sales in June were weak, according to analysts cited by the 21st Century Business Herald.
August gold (GCQ3) Monday closed +4.20 (+0.22%), and July silver (SIN23) closed up +0.472 (+2.11%). Gold on Monday saw support from the mild sell-off in the dollar, the small decline in T-note yields, and geopolitical uncertainty from Saturday’s aborted insurrection in Russia.
More Precious Metal News from Barchart
- Stocks Mixed on Geopolitical Concerns
- Dollar Sees Support as Euro Falls on Weak Eurozone PMI Reports
- Stocks Fall on Economic Gloom Driven by Weak PMI Reports
- Dollar Sees Support as T-note Yields Rise on Hawkish Fed
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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