The dollar index (DXY00) on Monday fell by -0.57% and posted a 1-week low. A decline in T-note yields Monday was bearish for the dollar. Also, a stock recovery on Monday curbed the liquidity demand for the dollar. The dollar on Monday initially found support on the jump in the 10-year T-note yield to a new 16-year high before T-note yields reversed their climb and turned lower.
Monday’s U.S. economic news was supportive for the dollar after the Sep Chicago Fed national activity index rose +0.24 to 0.02, stronger than expectations of -0.14.
EUR/USD (^EURUSD) on Monday rose by +0.69% and climbed to a 1-week high. The euro on Monday recovered from overnight losses and moved higher after news that Eurozone Oct consumer confidence was stronger than expected. Also, dollar weakness on Monday sparked short covering in EUR/USD.
The Eurozone Oct consumer confidence index fell -0.1 to -17.9, stronger than expectations of -18.2.
USD/JPY (^USDJPY) on Monday fell by -0.19%. The yen on Monday recovered from a 2-1/2 week low against the dollar and finished moderately higher. Also, Monday’s decline in the Nikkei Stock Index to a 2-week low sparked some safe-haven demand for the yen. In addition, rising Japanese government bond yields are bullish for the yen after the 10-year JGB bond yield rose to a new 10-year high Monday at 0.882%. The yen on Monday initially moved lower after the 10-year yield jumped to a 16-year high before turning lower. Also, geopolitical risks in the Middle East eased slightly and curbed safe-haven demand for the yen.
December gold (GCZ3) on Monday closed -6.60 (-0.33%), and Dec silver (SIZ23) closed -0.290 (-1.24%). Precious metals prices on Monday posted moderate losses. An easing of geopolitical risks in the Middle East reduced safe-haven demand for precious metals after Hamas released two U.S. hostages, and Israel was pressured to hold off on a ground invasion of Gaza to obtain the release of more hostages. Losses in metals were limited after the dollar index dropped to a 1-week low. Also, a decline in global bond yields on Monday supported precious metals.
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.
