Gold Futures Market News and Commentary
The dollar index (DXY00) on Friday rose by +1.17%. The dollar Friday rallied sharply to a 3-week high. Friday’s stronger-than-expected U.S. economic reports on Jan payrolls and Jan ISM services pushed up T-note yields and strengthened the dollar’s interest rate differentials. The more robust reports also increase the chance that the Fed will keep raising interest rates, which is bullish for the dollar. The sell off in stock Friday also boosted some liquidity demand for the dollar.
Friday’s U.S. economic news was bullish for the dollar. Jan nonfarm payrolls surged +517,000, much stronger than expectations of +188,000 and the largest increase in 6 months. Also, the Jan unemployment rate unexpectedly fell -0.1 to a 53-year low of 3.4%, showing a stronger labor market than expectations of an increase to 3.6%. In addition, the Jan ISM services index rose +6.0 to 55.2, stronger than expectations of 50.5.
EUR/USD (^EURUSD) on Friday fell by -1.00%. Strength in the dol... Read more