The dollar index (DXY00) Friday climbed to a 1-1/2 week high and finished up by +0.37%. The dollar found support from Friday’s US personal spending and the core PCE reports, which dampened speculation the Fed will cut interest rates by 50 bp at next month’s FOMC meeting. The dollar also found support from month-end position rebalancing. In addition, higher T-note yields Friday gave the dollar a boost.
US July personal spending rose +0.5% m/m, right on expectations. July personal income rose +0.3% m/m, stronger than expectations of +0.2% m/m.
