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Barchart
Barchart
Rich Asplund

Dollar Posts a 1-Week High and Gold Falls on Hawkish FOMC Minutes

The dollar index (DXY00) Wednesday rose by +0.28% and posted a 1-week high. Higher T-note yields Wednesday supported moderate gains in the dollar.  Also, the weakness in stocks on Wednesday boosted some liquidity demand for the dollar.  The dollar extended its gains Wednesday afternoon on the hawkish minutes of the Apr 30-May 1 FOMC meeting.

A negative factor for the dollar Wednesday was the unexpected decline in US Apr existing home sales. Also, Wednesday’s rally in the British pound (^GBPUSD) to a 2-month high was negative for the dollar.

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