The dollar index (DXY00) today is up by +0.17% at a 1-1/2 week high. The dollar is finding support from today’s US personal spending and the core PCE reports, which dampened speculation the Fed will cut interest rates by 50 bp at next month’s FOMC meeting. The dollar is also finding support today on month-end position rebalancing. However, the dollar fell back from its best levels after T-note yields gave up early gains and turned lower, weakening its interest rate differentials.
US July personal spending rose +0.5% m/m, right on expectations. July personal income rose +0.3% m/m, stronger than expectations of +0.2% m/m.
