lower spot cash volumes yesterday (5.6K??? hmm as holding or hmm as less byeing? (over the cliff coming (gamble?)

Dollar Falls On Crude Strength And U.S. Debt Ceiling Uncertainty

Rich Asplund -Barchart-33 minutes ago

The dollar index (DXY00) on Monday fell -0.249 (-0.26%). EUR/USD (^EURUSD) rose +0.0024 (+0.21%). USD/JPY (^USDJPY) fell -0.06 (-0.05%). The dollar retreated Monday on strength in the currencies of the crude-exporting countries of Canada, Norway, and Russia against the dollar after crude prices rallied to a 6-3/4 year high. The dollar was also under pressure from political uncertainty with the continued lack of cooperation among U.S. lawmakers to raise the debt ceiling.

EUR/USD (^EURUSD) on Monday rose moderately. A weaker dollar on Monday lifted EUR/USD along with comments from ECB Governing Council member Visco who said that "the pressures on producer prices should prove to be temporary and not result in a persistent rise in inflation." A negative for the euro was the -2.7 point decline in the Eurozone Oct Sentix investor confidence index to a 6-month low of 16.9, weaker than expectations of 18.6.

USD/JPY (^USDJPY) on Monday posted modest losses. The yen strengthened Monday on increased safe-haven demand after Japan’s Nikkei Stock Index sank to a 1-month low and the S&P 500 tumbled to a 2-1/2 month low.

Monday’s U.S. economic data was bullish for the dollar. U.S. Aug factory orders rose +1.2% m/m and +0.5% m/m ex-transportation, slightly stronger than expectations of +1.0% m/m and +0.4% m/m ex-transportation.

Fed comments on Monday were hawkish for Fed policy and bullish for the dollar. St. Louis Fed President Bullard said the U.S. is facing the highest rates of inflation in decades, and "there's a risk we will get higher inflation going into 2022."

December gold (GCZ21) on Monday closed up +9.20 (+0.52%), and Dec silver (SIZ21) closed up +0.108 (+0.48%). Precious metals prices on Monday gained on a weaker dollar. Also, a slump in stocks on Monday sparked some safe-haven demand for precious metals. Gold prices fell back from their best levels on higher T-note yields and hawkish Fed comments.

The dollar and gold have continued safe-haven support from concern the worldwide spread of the delta Covid variant will crimp the global economic recovery. However, the pandemic in the U.S. has improved after he 7-day average of new U.S. Covid infections on Sunday fell to a 1-3/4 month low of 107,385.

Dollar Falls On Crude Strength And U.S. Debt Ceiling Uncertainty (barchart.com)