Dollar Moves Lower as Equity Markets Strengthen

The dollar index (DXY00) today is down by -0.13%.  Today's stock rally has curbed liquidity demand for the dollar.  However, losses in the dollar are limited as today's +1% gain 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.

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EUR/USD (^EURUSD) today is up +0.32%.  The euro is moving higher today, supported by a weaker dollar. The euro also found support after today's report on Eurozone Jun economic confidence rose more than expected. Gains in the euro are limited after Eurozone May M3 money supply rose more than expected, a negative development for the euro.

The Eurozone Jun economic confidence indicator rose by +1.3 to 95.0, beating expectations of 94.3.

Eurozone May M3 money supply rose +3.2% y/y, stronger than expectations of +2.7% y/y.

The markets are discounting a +6% chance f

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/currencies/articles/dollar-moves-lower-equity-markets-143712540.html)