Silver Futures Market News and Commentary
The dollar index (DXY00) on Thursday fell by -0.58%. Thursday’s main bearish factor for the dollar was a sharp rally in the yen to a 4-month high on speculation that the BOJ might soon exit its ultra-easy monetary policy. Thursday’s rally in stocks also curbed the liquidity demand for the dollar.
Thursday’s U.S. economic news was mixed for Fed policy and the dollar. On the bearish side, Oct wholesale trade sales unexpectedly fell -1.3 % m/m, weaker than expectations of +1.0% m/m and the biggest decline in 7 months. Also, Oct consumer credit rose +$5.134 billion, weaker than expectations of +$8.5 billion. Conversely, weekly continuing unemployment claims fell -64,000 to 1.861 million, showing a stronger labor market than expectations of 1.910 million.
The markets are discounting a 1% chance for a +25 bp rate hike at the next FOMC meeting on Dec 12-13 FOMC and a 0% chance for that +25 bp rate hike at the following FOMC meeting on Jan 30-31, 2024. The markets are then... Read more