The fall in claims for unemployment benefits last week led to a rise in the US dollar on Thursday. Claims for unemployed people are now below the 300,000 threshold, which shows employment stability in the United States. The Producer Price Index also supported the greenback after rising to 0.4% in September. Growth helped the series of hurricanes that hit the US in the previous month when the gasoline price recorded its biggest gain in 2 years.
Draghi’s statement, which said he considered the policy of negative interest introduced by the ECB as successful, also supported the dollar against the single currency. However, market analysts expect that from January 2018, the ECB will reduce its quantitative easing to 30 billion per month, but it is likely that the deadline will be extended to September 2018.
The British pound recorded a volatile session after news came in that EU Chief Negotiator Michel Barnier could offer the UK to extend the deadline for leaving the EU by 2 years. This confirms that the talks between Brussels and London are stagnant.
Precious metals recorded 2-week highs on Thursday. Gold continued its rise earlier this week, reverting to the key level of $1,300.00 an ounce. After the precious metal recorded a $40 appreciation in the last two weeks, some of the market participants are expected to start collecting their accumulated profits.
WTI crude oil crude was also influenced by the dollar’s appreciation of yesterday’s day, recording a decline of 1.36% to $ 50.68 a barrel at the end of the session. Today, however, after the news of falling production and US reserves that are a sign of tightening the market, the price of oil has risen. Strong data on China’s oil imports also support prices, commented traders.
Today, China’s trade balance report is released. Chinese exports grew less strongly than expected in August. China’s exports in September saw an increase of 8.1%. Economists were looking for 8.8%. Imports recorded a 19.5 percent increase, more than the forecast of 16.5 percent. In addition, it was counted in yuan. The trade surplus came to 193 billion yuan.
The report on US inflation in September is due. Michigan University publishes its consumer confidence survey. Later in the day, comments from three US Federal Reserve representatives – Charles Evans, Robert Kaplan and Jerome Powell – are also expected.