The US dollar index (DXY) rose by 0.07% amid positive trade developments, as the US finalizes agreements with China on rare earth materials and expects trade deals with other partners by July 9. The University of Michigan’s June consumer sentiment index was revised upward to 60.7, countering weaker-than-expected US May personal spending, which fell by 0.1%, and personal income, which dropped by 0.5%, marking the largest decline in over three years.
Additionally, the US May core PCE price index rose by 0.2% month-over-month and 2.7% year-over-year, surpassing expectations. Minneapolis Fed President Kashkari indicated two potential 25 basis point rate cuts by year-end, with an implied 21% probability of a cut at the upcoming FOMC meeting on July 29-30. In the Eurozone, the June CPI in France increased by 0.8% year-over-year, while the economic confidence survey unexpectedly fell to 94.0.
Japan’s May retail sales decreased unexpectedly by 0.2% month-over-month, while the Tokyo CPI for June rose 3.1% year-over-year, both weaker than projected. Precious metals like gold and silver fell sharply today, with gold dropping to a month low, as a stronger dollar and positive stock market sentiment reduced safe-haven demand.
