The dollar index (DXY00) on Monday fell slightly by -0.11%. The dollar Monday was undercut by a -3 bp decline in the 10-year T-note yield, which undercut the dollar’s interest rate differentials.
The dollar was also undercut by Monday’s weak U.S. homebuilder report. The NAHB U.S. housing market index fell by -5 points to a 5-month low of 45, much weaker than expectations for a -1 point drop to 49. The reduced confidence expressed by U.S. homebuilders suggests that home-building activity may weaken in the coming months.
