The dollar index (DXY00) today added to Monday's sharp gains and is up by +0.43% to a 5-week high. The dollar has carryover support from Monday following the EU-US trade deal that is seen as favoring the US. Also, 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 US Jun advance goods trade deficit unexpectedly shrank, a supportive factor for Q2 GDP, and after July consumer confidence rose more than expected.
The US Jun advance goods trade deficit unexpectedly shrank to -$86.0 billion versus expectations of a widening to -$98.0 billion, a positive factor for Q2 GDP.
