Dollar Weakens on Strength in Stocks and Lower Bond Yields

The dollar index (DXY00) today is down by -0.19%.  The dollar is under pressure as today's stock rally has reduced liquidity demand for the dollar.  Also, benign inflation news today may keep the Fed from tightening monetary policy, a negative for the dollar, after the May core PCE price index, the Fed's preferred inflation gauge, rose as expected.

Losses in the dollar are limited, as today's US economic news shows the economy is strengthening.  Q1 GDP was revised upward, weekly jobless claims fell more than expected, and May personal spending and income, and May capital goods new orders rose more than expected.

Dollar Rallies and Gold Sinks on the Prospect of Tighter Fed Policy

Speculation of Tighter Fed Policy Boosts the Dollar and Hammers Gold

Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now!

US weekly initial unemployment claims fell -12,000 to 215,000, showing a stronger labor market than expectations of 225,000.

US May personal spending rise +0.7% m/m, stronger than expectations of +0.6% m/m.  May personal income rose +0.7% m/m, stronger than expectations of +0.4% m/m and the biggest increase in 10 months.

The US

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/currencies/articles/dollar-weakens-strength-stocks-lower-144055963.html)