Dollar Gives Up Early Gains as T-Note Yields Fall

The dollar index (DXY00) Tuesday fell by -0.01%.  The dollar on Tuesday fell back from a 2-1/2 week high and finished little changed.  Better-than-expected US economic news Tuesday on May S&P CoreLogic composite-20 home prices, Jun JOLTS job openings, and Jul consumer confidence supported the dollar. Also, the start of the 2-day FOMC meeting Tuesday sparked short-covering in the dollar.  However, the dollar gave up its gains Tuesday when the 10-year T-note yield dropped to a 4-1/2 month low, weakening its interest rate differentials.  

The US May S&P CoreLogic composite-20 home price index rose +6.81% y/y, stronger than expectations of +6.60% y/y.