The dollar ends its losing streak

The dollar ends its losing streak


The dollar has managed to break its negative performance over the past few days. The greenback rose despite the mixed data that was published. For the week ended July 22, claims for unemployment benefits rose to 244,000 – 7,000 more than analysts forecast, which expected a decrease to 237,000.

At the same time, however, investors were pleasantly surprised by data on long-term commodities. For June, they grew by 6.5%, well above expectations for an increase of 3.2%. This gave a breath of fresh air for the dollar and the price managed to grow against most of the major currencies. The dollar index, which shows the dollar against the basket of six major currencies, rose 0.63% to 93.94 points.

The euro retreated from a peak reached 1.1775 earlier in the day. The single currency ended the day with a fall of just over half a percentage point, reaching 1.1667 dollars per euro. On the British pound, the euro fell to 0.8926. The Canadian dollar failed to take advantage of the oil raise and ended the decline session. The USDCAD pair traded at 1.2520 levels.

Gold, in turn, retained its position despite the appreciation of the dollar. Earlier this day the noble metal climbed to a 6-month high, reaching $1,267 an ounce, but then dropped to $1258.66.

Futures on metal with a delivery term in August rose 0.84% ​​to $1,260 per troy ounce. “Today’s dollar appreciation puts gold under pressure,” said Philippe Streible, a senior broker at RJO Futures. Silver futures declined slightly to 16,612 dollars after the previously reached monthly peak at 16.82 dollars.

Oil headed for an eight-week high after realizing a new good performance. Black gold rose slightly over half a percent to $49.04 a barrel. Brent added 1.10% to its value, ending trading at $51.53. Investors welcome the signals that rising demand will be able to offset increased yields in some countries, such as the United States, Libya and Nigeria.

Saudi Arabia’s intention to limit production to 6.6 million barrels a day gives an additional boost to black gold. “The short-term downward trend in stocks helps oil prices rise, but shale production in the US is a factor that should not be underestimated and which is likely to continue to exert pressure on oil prices,” said Taylor Richie.

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