- DXY navigates the low-104.00s and adds to Monday’s losses.
- US yields edge a tad higher following Monday’s inactivity.
- Chicago Fed Index, Existing Home Sales next on tap.
The US Dollar Index (DXY), which gauges the greenback vs. a bundle of its main competitors, adds to the pessimism seen at the beginning of the week and retests the 104.20 area on turnaround Tuesday.
US Dollar Index vigilant ahead of Powell
The index loses ground for the second session in a row and extends the negative start of the week, although it manages well to keep business above the 104.00 mark for the time being.
In the meantime, the US cash markets return to the normal activity following Monday’s Juneteenth holiday and show a small improvement in yields in the short end and the belly of the curve.
The dollar is expected to remain vigilant on the ongoing debate over another probable 75 bps rate hike by the Federal Reserve in July, while…