The dollar was up on Friday morning in Asia but remained near a one-month low. The U.S. Federal Reserve maintained a dovish stance in its latest policy decision, and disappointing U.S. economic data also curbed the U.S. currency’s month-long rally.
The U.S. Dollar that tracks the greenback against a basket of other currencies edged up 0.11% to 91.970 by 12:34 AM ET (4:34 AM GMT). It fell as low as 91.855 on Thursday, a level not seen since Jun. 29, and was set to end the week off 1%, its worst weekly showing since early May 2021. The index is also down 0.5% for the month so far after its 2.8% rally the month before.
The USD/JPY pair inched up 0.03% to 109.50.
The AUD/USD pair inched down 0.08% to 0.7389 and the NZD/USD pair inched down 0.08% to 0.7003.
The USD/CNY pair inched up 0.06% to 6.4600 while the GBP/USD pair inched down 0.09% to 1.3948. The pound was near its highest in over a month, boosted by the dollar’s weaker tone and a fall in daily COVID-19 cases in the U.K.
Gold was down on Friday morning in Asia. However, the yellow metal remained near a two-week high and is set to end the week with its biggest weekly gains since May 21 over signs that the U.S. Federal Reserve is unlikely to begin asset tapering and hike interest rates in the short term.
Gold futures edge down 0.12% to $1,829 by 11:50 PM ET (3:50 AM GMT), after hitting its highest level since Jul. 15 on Thursday. The dollar, which usually moves inversely to gold, edged up on Friday but remained near the one-month low hit during the previous session. Investors continue to digest the Fed’s comment that the labor market still had “some ground to cover” before beginning asset tapering as it handed down its policy decision on Wednesday.
Thursday’s initial jobless claims data supported the Fed’s stance, as 400,000 claims were filed over the past week. The figure was higher than the 380,000 claims in forecasts prepared by Investing.com but lower than the 424,000 claims filed during the previous week.
Oil was down Friday morning in Asia but was set to post solid gains as the week and month wraps up. Fuel demand is growing faster than supply, while vaccination rates dampened the impact of a resurgence in COVID-19 cases globally.
Brent oil futures fell 0.79% to $74.51 by 1:18 AM ET (5:18 AM GMT) after climbing 1.75% on Thursday. WTI futures were down 0.736 to $73.06, whittling down a 1.7% rise.
Both Brent and WTI futures were set for gains of around 2% for the week, over signs of tight crude supplies and strong fuel demand in the U.S., the world’s biggest oil consumer. Both the American Petroleum Institute and the U.S. Energy Information Administration reported a draw in U.S. crude oil supplies, with crude stocks at Cushing at their lowest since January 2020.
Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. UR Trade Fix Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.
It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests when providing our services