The dollar took a breather this morning after reaching near a five week-high against a basket of major currencies, DXY, on Tuesday. The greenback was boosted by surprisingly strong US retail sales in April which saw a rise in in households buying of cars, building materials and a range of other goods. The data pointed to the underlying strength in the US economy and led to increased optimism about a recovery in the world’s largest economy.
After
rallying on Friday and Monday the USD took a pause and retracted 0.3 % against
the currency basket. Euro7USD trades at 1.3010 and USD/JPY stands at 1.0156.
The slightly weaker dollar helped stabilizing commodity prices with gold
gaining one percent to USD 1445
recouping losses from previous
sessions. The stronger dollar is based
on a recovery scenario for the US economy.
A sluggish growth in emerging countries have kept commodity prices low.
The
prospects for a firmer US recovery are
likely to have a positive effect on the
demand for commodities. There are also small signs of stability inside the struggling Euro zone. During yesterday’s
bond auction Italian bonds fell to its lowest level since January. Investors backstopped by
guarantees from the European Central
Bank (ECB) and brushed off concerns
about Italy’s political and economic troubles, pointing towards a normalization
in financial markets.
After a
two-day losing streak, Asian stocks again
rose this morning. The Asian-Pacific MSCI-index is up 0,3 % with
Australian and South Korean stocks also climbing. The Japanese Nikkei continues
to rise 0,2 %.Australian stocks were
helped by a weaker Aussie. Oil prices are slightly up from yesterday. US crude
futures, NYMEX, trade at USD 95,41 a barrel. Brent crude is up 0,1 % to 102,90
.Wall Street ended flat yesterday after recent highs.
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