Tag: Dollar

Gold slips as dollar steadies, U.S. stocks extend climb

Gold slips as dollar steadies, U.S. stocks extend climb

Gold slipped Monday, pressured by stock-market gains and overall global risk-taking seen after Friday’s U.S. jobs report eased concerns over accelerating inflation and faster U.S. interest-rate hikes.
April gold GCJ8, -0.12% fell $5.60, or 0.4%, to $1,318.40 an ounce.
Gold prices ended higher Friday, turning the metal’s weekly return just positive after a report revealed a strong rise in U.S. hiring but disappointing growth in wages.
The latest snapshot of the U.S. labor market showed strong job growth and a higher participation rate, with the nation adding 313,000 new jobs in February.
Rising inflation could add pressure on the Fed to speed up its rate rises, which could strangle the stock market.
Gold, in turn, although negatively affected by higher interest rates, could attract hedging demand against too-hot inflation.
Higher interest rates tend to be dollar-positive.
“I think the [U.S. dollar] could continue to recover this week.
That’s because in a relatively quiet week, the main indicator—in fact the main event—is going to be the release of the U.S. CPI for February on Tuesday,” said Marshall Gittler, chief strategist at ACLS Global.
As for other metals, May silver SIK8, -0.38% fell 11.3 cents, or 0.7%, to $16.495 an ounce.

The Australian dollar is under pressure ahead of today’s key US jobs report

The Australian dollar is under pressure ahead of today’s key US jobs report

Strength in the US dollar was driven by a slide in the euro following the ECB’s interest rate decision.
Highlights today include the Bank of Japan’s monetary policy decision and US non-farm payrolls, especially the hourly earnings figure.
Here’s the scoreboard as at 8.05am AEDT.
Along with large declines across base and bulk commodity prices, along with crude oil, the Aussie was also weighed down by another burst of US dollar strength.
The first comes from the Bank of Japan (BoJ) with the release of its March monetary policy decision.
While no one expects policy to change at this meeting, given increased speculation that the bank may reduce monetary stimulus later this year, there’ll be plenty of attention on BoJ Governor Kuroda’s press conference following the policy decision.
This release has lost its market-moving clout in recent years, so little excitement is expected.
The other big event for the session will come from the release of US non-farm payrolls for February at 12.30am AEDT.
“Payroll growth is seen at 200,000, the unemployment rate down 0.1% to 4.0% and, more important than either, average hourly earnings is seen rising 0.2%, leaving the annual rate at 2.8% from 2.9% in January,” Attrill at the NAB says.
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Dollar strengthens ahead of Fed minutes

Dollar strengthens ahead of Fed minutes

Getty Images The U.S. dollar remained on top for a third day in a row, in part helped by economic data that weighed on its rivals across the Atlantic, as U.S. traders are looking ahead to this afternoon’s release of the Federal Reserve’s January meeting minutes.
The ICE U.S. Dollar Index DXY, +0.25% which measures the buck against a basket of six rivals, climbed 0.3% to 89.949, adding on from its Tuesday gains.
The broader WSJ U.S. Dollar BUXX, +0.22% meanwhile ticked up 0.2% to 83.77.
The pound last bought $1.3914, compared with $1.3997 late Tuesday.
Back in North America, the buck also strengthened versus the Canadian dollar USDCAD, +0.2768% buying C$1.2677, up from C$1.2647.
Investors are awaiting the Federal Reserve’s meeting minutes from January, to be released at 2 p.m. Eastern today, to shed further light on the central bank’s inflation and interest-rate expectations for the year.
Read: Yes, the U.S. dollar is weaker—but there could be a silver lining In the U.K., the unemployment rate unexpectedly rose for the first time in almost two years in the fourth quarter of 2017.
Meanwhile on the European continent, Markit PMI data for February showed a slowdown across the board, in the eurozone’s manufacturing, services and composite data, which is seen as a knock the currency block’s spotless growth trajectory over the past months.
“Although the [Fed meeting minutes] may be a bit dated as it happened before the recent turbulence in the markets, it may still inform the market given the recent hawkish bias from the Fed,” wrote Boris Schlossberg, managing director of FX strategy.
The manufacturing index rose to 55.9 from 55.5.

Dollar jumps to 2018 high after Fed members strike hawkish tone

Dollar jumps to 2018 high after Fed members strike hawkish tone

Shutterstock The dollar rebounded Monday, charging higher after two Federal Reserve members hinted that at least three interest-rate hikes are on the table in 2018.
The ICE U.S. Dollar Index DXY, -0.50% climbed 0.4% to 92.344, trading around its highest level since Dec. 29.
The broader WSJ Dollar Index BUXX, -0.36% gained 0.3% to 85.90 on Monday.
The euro EURUSD, +0.7562% fell to $1.966 late Monday from $1.2032 late Friday in New York.
The shared currency stayed lower after data from Eurostat showed retail sales for the region rose 1.5% in November, meeting forecasts.
Among emerging-market currencies, the South African rand USDZAR, +0.1509% lost ground against the dollar, which bought 12.3847 rand, up from 12.3086 late Friday.
Federal Reserve Bank of Cleveland President Loretta Mester in a Reuters interview on Friday said the strong U.S. economy and low unemployment level make the case for four rate hikes in 2018.
In the same vein, San Francisco Fed President John Williams in another Reuters interview on Saturday called for three rate hikes this year, arguing that the already solid economy will get a boost from the Republican tax overhaul.
Higher interest rates usually lead to a stronger dollar as it becomes more attractive to invest in the U.S., and therefore sparks demand for the greenback.
The market is currently pricing in a 61% chance of a 25-basis-point rate hike at the Fed’s meeting in March.