The dollar index rose by +0.82% on Monday due to higher T-note yields and weakness in stocks. US new home sales fell -0.6% m/m in July but still beat expectations. Fed futures imply an 82% chance of a rate cut in September. EUR/USD fell -0.95% on dollar strength and concerns about the Russian-Ukrainian war. German business climate survey beat expectations. Diplomatic efforts to end the war in Ukraine remain elusive. Swaps price in a 1% chance of an ECB rate cut in September. USD/JPY rose by +0.62% as the yen slid due to higher T-note yields and Japanese economic news. Japan’s leading index CI was revised lower. Precious metal prices fell due to a stronger dollar and higher global bond yields, with gold also seeing safe-haven demand. Gold losses were contained by rising inflation expectations and safe-haven support related to US tariffs and geopolitical risks.

Read more at Yahoo Finance: Dollar Gains on Higher T-Note Yields and Weak Stocks