Scrap #2 Copper 94-96% Idx Futures Market News and Commentary
The dollar index (DXY00) on Monday fell slightly by -0.08%. The dollar was undercut by US political uncertainty and reduced liquidity demand due to the rally in stocks. The dollar saw underlying support from the +1.6 bp rise in the 10-year T-note yield to 4.255%, which supported the dollar’s interest rate differentials.
US political uncertainty rose after President Biden dropped out of the presidential race on Sunday and endorsed Vice President Harris. The markets will be watching to see how quickly VP Harris can wrap up the nomination as the Democratic presidential candidate and how she polls against Mr. Trump once she becomes the nominee.Â
The recent market narrative has been that a Trump win would be bullish for the dollar because a Trump administration would likely pursue tax cuts and a stimulative fiscal policy, which would be hawkish for Fed policy and thus bullish for the dollar. However, Mr. Trump has voiced support for a weaker dollar as a stimulus measure fo... Read more