FX Closing Comments

Although crude prices spiked higher today on geo-political turmoils in Iran and North Korea, the Dollar managed to make some nice gains. The Dollar Index was up 45 ticks today and the gains were broadly based. Much of the optimism had to do with a surprisingly big factory orders figure for May. The headline number was .7%, against expectations for a 2% loss. Excluding transportation orders, the gain was 1.2%. The pick-up in factory activity calls to question the predicted economic slow-down, which many analysts (including the Fed) feel is approaching in the 2nd half. Tomorrow, the Bank of England and ECB meet, though no changes are expected. UK industrial production and manufacturing data are also on tap.