The dollar index (DXY00) on Monday rose by +0.36% to a 1-week high. The dollar moved higher Monday as EUR/USD retreated after comments from Ukrainian President Zelenskiy dampened optimism of any quick resolution to the Russian-Ukrainian war when he rejected any talk of Ukraine ceding territory to Russia. Also, short-covering ahead of the US CPI report for July on Tuesday gave the dollar a boost. Gains in the dollar were limited after Fed Governor Michelle Bowman said she favors three Fed rate cuts this year.
Gains in the dollar are also limited by the negative carryover from last Thursday, when President Trump nominated Stephen Miran to be a temporary replacement for Adrianna Kugler as Fed Governor. Miran is currently chairman of the Council of Economic Advisors and is seen as dovish and supporting President Trump's calls for lower interest rates.
