The U.S. Dollar Index is trading at 105.556, just below its two-month high at 105.805. With the Fed standing firm on rates (waiting for a convincing decline in inflation) against a backdrop of recent and expected cuts from other central banks, the dollar remains the dominant go-to currency. The dollar is higher vs. most G10 today, the only exceptions a 0.13% decline vs. EUR and 0.10% drop against the DKK. The dollar’s primary gains against the majors include a 0.70% advance vs. MXN, +0.64% vs. BRL, +0.50% vs. NZD and several sub-0.50% gains.
U.S. Treasury yields are edging higher with the long-term tenors gaining the most. The 30-year tenor is leading all gains, +0.068%. The 10-year yield is rebounding from Friday’s dip to 4.194%, its lowest return since March 28th.
The U.S. economic calendar is full this week. Key data releases include tomorrow’s Retail Sales and Industrial Production, Wednesday’s Industrial Production, Thursday’s Weekly Jobless Claims and Housing Starts, and Friday’s Manufacturing PMI and Existing Home Sales.
Federal Reserve speakers today include Williams (12pm), Harker (1pm), and Cook (9pm).
