Commodities
Dollar Rises on Strong US Economic Data, Crude Oil Slump
The US dollar is on the rise today due to signs of strength in the American economy. The dollar index DXY has increased by +0.23% following news that July personal spending and income rose more than expected, while Q2 personal consumption was revised upward.
The higher bond yields have also strengthened the dollar's interest rate differentials. However, gains are limited as July capital goods new orders nondefense ex-aircraft and parts rose less than anticipated, a proxy for capital spending.
In addition, WTI crude oil has dropped more than -1% to a 1.5-week low, which lowered inflation expectations and could lead the Fed to loosen monetary policy, a negative factor for the dollar.