On Monday, the greenback appreciated against most major rivals. However, the Pound was resilient, posting a modest intraday advance against its American rival.
Dollar’s strength could be attributed to weekend news indicating that US President Trump signed four executive orders on fiscal aid.
Gold prices kept retreating from record highs, with spot gold ending the day around $2,025 a troy ounce. Crude oil prices remained stable, with WTI settling at $42.00 a barrel.
The Dow Jones Industrial Average added 357.96 points, or 1.3%, to 27,791.44, the S&P 500 put up 9.19 points, or 0.27%, to 3,360.47 and the Nasdaq Composite lost 42.63 points, or 0.39%, to 10,968.36.
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On Tuesday, the dollar initially fell with mounting risk-appetite, but recovered its good shape in the US afternoon, recovering the ground lost against its high-yielding rivals and reaching fresh highs against most other major currencies.
Gold plunged, with spot down to $1,909.90 a troy ounce, shedding roughly $120.00 in the day. Crude oil prices followed equities’ behaviour, ending the day in the red amid dollar’s comeback. WTI settled around $41.60 a barrel.
The Dow Jones Industrial Average lost 101.13 points, or 0.36%, to end at 2 7,690.31 while the S&P 500 dropped 26.14 points, or 0.78%, to 3,334.33 and the Nasdaq Composite lost 182.74 points, or 1.67%, to 10,785.62.
On Wednesday, the dollar edged lower on the back of prevalent optimism, as investors preferred risk assets. The greenback appreciated only against the JPY, with the pair reaching 107.00.
Gold bottomed at $ 1,862 a troy ounce, recovering some ground afterwards to close the day unchanged around $1,913 a troy ounce.
The Dow Jones Industrial Average DJI rose 289.93 points, or 1.05%, to 27,976.84, the S&P 500 SPX gained 46.66 points, or 1.40%, to 3,380.35 and the Nasdaq Composite IXIC added 229.42 points, or 2.13%, to 11,012.24.
The dollar stayed out of the market’s favor on Thursday, falling against most major rivals but the JPY. The American currency got to advance during US trading hours, backed by better than expected weekly unemployment claims, which unexpectedly fell below 1 million, the first time since lockdowns began back in March.
The EUR/USD pair held above 1.1800, and posted a fourth consecutive daily high. The Pound weakened at the end of the day but holds above 1.30 against its American rival.
The USD/JPY pair advanced to a fresh weekly high just above 107.00 as US Treasury yields got boosted by US employment data, reaching fresh five-week highs.
Gold continued to recover ground, ending the day at $ 1,950 a troy ounce.
The Dow fell 80.12 points, or 0.29%, to 27,896.72, the S&P500 lost 6.92 points, or 0.20%, to 3,373.43. The Nasdaq Composite IXIC added 30.27 points, or 0.27%, to 11,042.50.
On Friday, the dollar remained intrinsically weak, amid mixed US data and news indicating that the US Congress decided to take a month-long holiday without agreeing on a stimulus package. Major pairs, however, closed the week largely unchanged and held within familiar levels.
The USD/JPY pair was an exception, reaching a fresh August high on the back of resurgent US government debt yields.
Gold prices collapsed this past week after hitting all-time highs, to stabilize around $ 1,950 a troy ounce. The metal shed some ground on Friday but held around its new comfort level. Crude oil prices, in the meantime, remained stable, with WTI ending the week at $42.10 a barrel.
Written by;
Nnadi Victor
An Independent Economics Researcher
