The dollar index (DXY00) on Monday rose by +0.56%. Higher T-note yields Monday gave the dollar a boost after the 10-year T-note yield rose to a 2-week high. Also, Monday’s U.S. economic news showed signs of strength that was dollar supportive after the Apr Empire manufacturing survey general business conditions index rose to a 9-month high, and the Apr NAHB housing market index rose to a 7-month high. The market shows an 88% chance the Fed will raise the federal funds target range by 25 bp at the upcoming May 2-3 FOMC meeting.
Monday’s U.S. economic news was hawkish for Fed policy and bullish for the dollar. The Apr Empire manufacturing survey general business conditions rose +35.4 to a 9-month high of 10.8, stronger than expectations of -18.0. Also, the Apr NAHB housing market index rose +1 to a 7-month high of 45, right on expectations.
