The dollar index (DXY00) Monday rose by +0.22% and posted a 2-week high. The dollar garnered support Monday from weakness in the Canadian dollar, which fell to an 8-1/2 month low against the dollar, and weakness in the British pound, which fell to a 3-1/2 week low against the dollar. Also, short covering ahead of the Tue/Wed FOMC meeting boosted the dollar. A decline in T-note yields Monday limited the strength of the dollar.
Monday’s US economic news was bearish for the dollar after the Jul Dallas Fed manufacturing outlook level of general business activity survey unexpectedly fell -2.4 to -17.5, weaker than expectations of an increase to -14.2.
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