The dollar index (DXY00) on Monday fell by -0.26%. The dollar retreated as Monday's stock rally curbed liquidity demand for the dollar. However, losses in the dollar were limited as Monday's +2% jump in WTI crude oil prices has strengthened inflation expectations and could prompt the Fed to keep monetary policy tight, a supportive factor for the dollar.
The swaps markets are discounting the odds at 32% for a +25 bp rate hike at the next FOMC meeting on July 28-29.
