Gold Futures Market News and Commentary
The dollar index (DXY00) on Thursday fell -0.463 (-0.50%). EUR/USD (^EURUSD) rose +0.0046 (+0.39%). USD/JPY (^USDJPY) fell -0.48 (-0.44%). The dollar index on Thursday dropped to a new 1-1/2 week low. A rally in the S&P 500 on Thursday to a new record high reduced the liquidity demand for the dollar. Losses in the dollar accelerated Thursday on weaker-than-expected U.S. economic data that was dovish for Fed policy.
EUR/USD (^EURUSD) on Thursday climbed to a 3-week high. The euro garnered support Thursday on better-than-expected Eurozone economic data. Eurozone July economic confidence rose +1.1 to a record 119.0 (data from 1985), stronger than expectations of +0.3 to 118.2. Also, the German July unemployment rate fell -0.2 to a 16-month low of 5.7%, showing a stronger labor market than expectations of 5.8%. Finally, signs of faster inflation are hawkish for ECB policy and supportive for the euro after German July CPI (EU harmonized) rose +3.1% y/y, stronger than expe... Read more