The dollar index (DXY00) on Thursday rose by +0.27% on higher T-note yields. The dollar extended its advance Thursday after stocks sold off, which boosted the liquidity demand for the dollar. In addition, Thursday’s better-than-expected U.S. jobless claims and Q3 GDP reports were hawkish for Fed policy and bullish for the dollar.
Thursday’s U.S. economic news was bullish for the dollar. Weekly initial unemployment claims rose +2,000 to 216,000, showing a stronger labor market than expectations of 222,000. Also, Q3 GDP was revised upward by +0.3 to 3.2% (q/q annualized), stronger than expectations of no change at 2.9%, as Q3 personal consumption was revised upward to 2.3% from 1.7%.
EUR/USD (^EURUSD) on Thursday fell by -0.12%. The euro Thursday gave up an overnight advance and moved slightly lower on a stronger dollar. EUR/US initially posted moderate gains in overnight trade on hawkish comments from ECB Vice President Guindos, who said, "increases of +50 bp by the ECB may become the new norm in the near term, and we should expect to raise interest rates at this pace for a period of time."
USD/JPY (^USDJPY) on Thursday fell by -0.01%. The yen on Thursday was little changed. Higher T-note yields Thursday weighed on the yen. Another bearish factor for the yen was the BOJ’s QE asset purchase operation whereby it unexpectedly purchased 650 billion yen of 3-5 year securities and 675 billion yen of 5-10-year securities.
February gold (GCG3) on Thursday closed down -30.1 (-1.65%), and March silver (SIH23) closed down -0.5727 (-2.36%). Precious metals Thursday closed sharply lower on a stronger dollar. Also, higher global bond yields weighed on gold prices. Finally, metals were undercut by Thursday’s stronger-than-expected U.S. jobless claims and Q3 GDP reports, which bolstered expectations for the Fed to keep interest rates higher, for longer.
More Precious Metal News from Barchart
- Stocks Slide on Chip Stocks and Hawkish Economic News
- Dollar Moves Higher as Yen Relinquishes Some of Tuesday’s Sharp Gains
- Stocks Higher on Positive Corporate Earnings
- Dollar Retreats as Yen Surges on Hawkish BOJ
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.
/AI%20(artificial%20intelligence)/AI%20engineer%20working%20on%20laptop%20by%20ART%20STOCK%20CREATIVE%20via%20Shutterstock.jpg)
/Nike%2C%20Inc_%20swish%20by-%20Tartezy%20via%20Shutterstock.jpg)
