The US Dollar Index (DXY) has struggled, recently testing the 99.00 zone. Now it’s approaching its monthly lows as investors continue to assess the new market paradigm. The DXY’s descent has been met with forceful trends on the other side of the currency spectrum. It has created a tremendous ripple effect – especially in the past trading session – through commodities.
The USD/JPY pair is up sharply in currency markets. It recently achieved a nine-month high, breaking through the 155.00 resistance level. It began an aggressive daily corrective, falling back toward where the 154.00 support region had proven its mettle over the summer. This up-and-down movement is indicative of the continued volatility as market participants respond to a changing economic environment.
Meanwhile, silver prices experienced notable movement. Silver even topped over $54.00 per ounce for a short time. Yet, it was not long before it retreated below the sub-$53.00 range, signaling one of the biggest losses on the day. This decline is part of a larger trend of negative sentiment among traders for the precious metals.
The EUR/USD cross has shown remarkable strength. Third straight day higher, today actually reaching new two-week highs above 1.1660. This positive trend immensely underscores the considerable strengthening of the euro against the dollar in the wake of choppy economic data.
Meanwhile, West Texas Intermediate (WTI) crude oil prices stabilized after a Wednesday swoon of nearly $10 a barrel. Prices did not stay below the $59.00 marker for long, indicating a slight comeback in the energy industry following recent turmoil.
Furthermore, the GBP/USD currency pair erased two consecutive daily declines jumping above the 1.3200 level. This rebound is indicative of a change in sentiment, as investors are increasingly confident in the British pound while global conversations about fiscal and monetary policy continue.
In a mostly flat trading day, the AUD/USD finished almost unchanged. The recent stability reflects the fact that the Australian dollar has found a new floor against the US dollar.