The dollar index (DXY00) on Wednesday rose by +0.19%. The dollar moved higher on Wednesday as T-note yields rose after Fed Chair Warsh provided no guidance on interest rates at a meeting of central bankers in Portugal. The dollar also found support after the euro weakened following the Eurozone June CPI report, which showed prices rose less than expected. In addition, Wednesday’s decline in the yen to a new 39-year low is dollar-supportive.
The dollar fell back from its best level on Wednesday after the Jun ADP employment change rose less than expected and the Jun ISM manufacturing index fell more than expected. Also, Wednesday’s decline in WTI crude oil to a 4.25-month low eases inflation expectations and may prompt the Fed to ease monetary policy, a negative factor for the dollar.