The dollar index (DXY00) today is up by +0.72% at a 1-week high. The dollar is gaining today as global trade tensions ease following the EU and US agreeing to a trade deal, and 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. On the negative side, today's rally in the S&P 500 to a new all-time high has curbed liquidity demand for the dollar.
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.
