The U.S. dollar rose to a two-month high against its peer currencies on Tuesday’s trading session and is on track to log its best month in the last six. The dollar was aided by recent statements made by the Federal Reserve in favor of raising interest rates in the coming months. The greenback soared over 4% since early May against the Japanese yen. The yen started to decline after Japanese officials warned that the government might employ measures to keep the currency’s value lower.
The dollar pulled ahead of its peers after the Federal Reserve became more positive on the prospect of raising U.S. borrowing costs. Most recently, Federal Reserve Chair Janet Yellen said on Friday that it “would be appropriate” to raise interest rates in the coming months. If positive, the upcoming nonfarm payrolls report scheduled to release of Friday may further strengthen the currency. The dollar’s strength weighed down on gold prices. The precious metal fell 0.1% to $1,215.6 an ounce.
This week holds a number of critical economic events, including the European Central Bank’s meeting on Thursday, OPEC’s meeting also on Thursday, and the U.S. nonfarm payrolls report on Friday. Considering recent statements from the Fed, the nonfarm payrolls report will be in high focus. For the most important binary options news, stay updated with OptionsClick, the top binary options trading broker.
Recent remarks from the Federal Reserve helped the dollar move higher
Gold dove below $1,200 for the first time since February after the dollar rose to a two-month high. The dollar recently gained momentum after comments from top Federal Reserve officials pointed to an interest hike in the near future. The rate hike would increase the dollar’s value, making the dollar-denominated precious metal less attractive to investors. Gold initially fell more than 1% below $1,200, only to later settle at $1,209 an ounce. The U.S. dollar index rose 0.35% while the euro struggled to maintain a 2.5-month low against the greenback.
While U.S. and U.K. markets were closed for a holiday, European stock markets were mostly higher on Monday’s choppy trading session. The pan-European Stoxx 600 gained 0.1%, the French CAC 40 added 0.15% and the German DAX 30 rose 0.4% to touch a one-month high.
Major economic events include Japanese and German unemployment later today. This week holds a number of critical economic events, including the European Central Bank’s meeting on Thursday, OPEC’s meeting also on Thursday, and the U.S. nonfarm payrolls report on Friday. Considering recent statements from the Fed, the nonfarm payrolls report will be in high focus. For the most important binary options news, stay updated with OptionsClick, the top binary options trading broker.
European shares were higher despite a retreat in surging energy prices
European shares were slightly higher on Friday despite a sharp decline in oil prices. The pan-European Stoxx 600 gained 0.2%, adding to a total of 3.4% in weekly gains. Among the index’s major sectors, energy, auto and mining shares led the decliners. The UK’s FTSE 100 and France’s CAC 40 both ended marginally higher with less than 0.1% in gains, while the German DAX 30 added 0.13%. Athens’ stock exchange stood out with a 1.3% decline, likely the result of renewed concerns over the country’s debt repayment plans.
Oil prices extended losses on Friday as investors cashed-in on recent gains. Furthermore, the recent rise above the psychologically significant $50 price-point has created concerns that oil producers would up increase production. The strong dollar also weighed down on oil after Federal Reserve Chair Janet Yellen stated that a U.S. interest rate hike in the coming months is appropriate.
U.S. markets will be closed today for the Memorial Day holiday. German inflation data will be released later in the session, followed by Japanese and German unemployment data on Tuesday. This week’s central data release is Friday’s U.S. nonfarm payrolls. Considering recent statements from the Fed, this data release will be in high focus. For the most important binary options news, stay updated with OptionsClick, the top binary options trading broker.