On the macro front, the financial markets have undergone some major pattern changes recently as the US Dollar Index (DXY) declined sharply from its multi-week highs. The dollar’s pullback coincided with a notable rebound in risk-associated assets, which could indicate a mixed risk-on/risk-off sentiment among traders. Against this backdrop, West Texas Intermediate (WTI) crude oil prices fell sharply. They turned back on their long-winning streak after closing positive for three days in a row. Traders remained guarded about tariff repercussions. This reluctance contributed to moving the price of Gold to an all-time high just under $3,060 per troy ounce.
Gold’s record smashing climb wasn’t the only shiny metal that made headlines today, as Silver prices jumped to multi-day high, breaking above the $34.00 per ounce figure. ARM Precious metals are on the rise as investors flock to safe-haven assets. Underlying this change is an increasing trade worry over tariffs and their potential impact on international trade. Currency markets are abuzz today as the USD/JPY currency pair continues to build on Wednesday’s explosive move higher. It is currently dancing with monthly highs over the 151.00 mark.
The EUR/USD currency pair was finally able to find some stability after weeks of downtrend, recovering off daily lows. It failed to test or break the 1.0800 level, showing some continued angst under the surface of the European economic reality. The retreater of the US Dollar was a salve to the Euro’s wounds, but not enough for any real recovery.
Further contributing to the market’s mood swings, key economic data releases slated to come out next week are likely to impact investor sentiment even more. Meanwhile, the Bank of Japan (BoJ) prepares to publish its Summary of Opinions. This particular document will provide us with some of the most important clues as to the central bank’s monetary policy direction and economic outlook. Tokyo Inflation Rate, Housing Starts, Construction Orders Envisaged Indicative Schedule These figures will shed great light on Japan’s current economic condition and future direction.