Strong data supports the dollar index
Gold holding its ground, thanks to geoplitics
Crude traders keeping taps on supply
Crypto crisis continues
Forex
The USD found some comfort with today’s economic data releases showing lower than anticipated jobless claims and continuing claims in the United States, sending the euro down 0.5% against the dollar. Strong US economic data solidifies investors’ beliefs that there will be a FED rate rise coming next week.
Further strengthened by rising treasury yields and economic data showing a rise in the price of imported goods during the month of February, the dollar edged 0.2 percentage points higher against the Sterling.
Kudlow’s appointment as Trump’s senior economic adviser reinforces beliefs that the White House will go the full way in delivering its protectionist manifesto. Safe haven currencies such as the Japanese Yen flourished as a result, up to 106.33.
Gold
Worries about a global trade war continued to cast a shadow over US equity markets with the S&P 500 down 0.2% and the Nasdaq Composite down 0.4%. Despite capital outflows from the equity markets, the inverse correlation between the market for Gold and Equities did not materialize, seeing the precious metal lose nearly $10, down to $1316/ounce. Although a firmer dollar offset news that Kudlow, who has previously expressed approval for additional tariffs on US imports from China, will become director of the national economic council, Gold bulls will likely benefit from worsening trade tensions.
Oil
Oil prices moved higher in tandem with the industry-focused Dow Jones, up 0.5% today, but gains were limited due to worries that crude supply would outstrip demand this year. Fears expressed from the International Energy Agency on Thursday that a global trade war could threaten oil demand growth.
Cryptocurrency
Cryptocurrencies continued to extend their descent as the fundamentals weaken. Google’s decision to ban cryptocurrency related adverts will only harm the rate at which this new asset class is adopted. Furthermore large selling pressure comes amidst Mt.Gox, a bankrupt Japanese cryptocurrency exchange sells large quantities of coins to repay creditors.
