Dollar Climbs with Bond Yields

Group 1: Dollar Index and Federal Reserve - The dollar index rose by +0.31% supported by higher T-note yields and weakness in the British pound [1] - Minneapolis Fed President Neel Kashkari indicated support for two additional Fed rate cuts this year, influencing market expectations [3] Group 2: Eurozone Economic Indicators - The EUR/USD fell by -0.33% due to deflation concerns in the Eurozone and a stronger dollar [4] - German August PPI declined by -0.5% month-on-month and -2.2% year-on-year, marking the largest year-on-year decline in 15 months [5] Group 3: ECB Policy Outlook - ECB comments reflected mixed signals, with some members suggesting the need for further monetary easing due to below-potential growth and inflation concerns [6] - The divergence in central bank policies is limiting euro losses, as the ECB is perceived to be nearing the end of its rate-cut cycle while the Fed is expected to cut rates further [7]