The dollar index (DXY00) on Monday rose sharply by +1.03% to a 1-week high. The dollar rallied Monday as global trade tensions eased following the EU and US agreeing to a trade deal, and reports that China and the US are set to extend their trade truce by another three months. The dollar also garnered support as the euro weakened, as the EU-US trade deal is seen as favoring the US. In addition, expectations for the Fed to keep interest rates unchanged at the end of Wednesday's 2-day FOMC meeting are supportive of the dollar. The dollar extended its gains after the Jul Dallas Fed manufacturing outlook survey rose more than expected to a 6-month high.
The US Jul Dallas Fed manufacturing outlook survey rose +13.6 to a 6-month high of 0.9, stronger than expectations of -9.0.
