The US Dollar Index (DXY) dropped on Thursday. It eased back into the 98.80-98.70 area in a relatively directionless session with a lack of conviction. This movement came amid a backdrop of fluctuating commodity prices and various economic indicators awaiting release in the coming days.
The British Pound (GBP) is under similar pressure, with GBP/USD falling back down toward the 1.3340 area. At the same time, the Euro (EUR) continued to strengthen, pushing EUR/USD to lock in new two-month highs above the 1.1680 level momentarily. In contrast, the Japanese Yen (JPY) was down across the board, with USD/JPY making fresh two-week highs in the mid-154.00s.
For Australia, traders are nervously eyeing the RBA’s next interest rate decision. We’re very excited to have it, and it’s going to be a great program—it’s happening on December 9. This decision is likely to significantly affect the Australian Dollar (AUD). It shot through the 0.6600 level recently, doing so for the first time in early October.
WTI crude oil prices skyrocketed this week, hitting an amazing peak of 76.91. For a short time, they passed above the important $60.00 figure per barrel. The current spike in oil prices is a symptom of those same market forces and geopolitical upheaval affecting both sides of the supply-demand equation.
Silver prices experienced a significant drop-off, going back down to three-day lows around $56.50 per ounce. This recent drop underscores the fragility of precious metals at a time of changing investor sentiment.
Gold prices remained relatively stable, hovering around the $4,200 mark per troy ounce, indicating a cautious approach among investors seeking safe-haven assets.
Japan is poised to come out with a number of significantly important economic indicators. Next up to watch – Reuters Tankan Index, Current Account, final Q3 GDP Growth Rate, Bank Lending and Eco Watchers Survey. These reports should give a good read on Japan’s economic health and might move the markets in that part of the world.
The markets are still in full-bore reactionary mode to the latest news. Traders are remaining vigilant to any domestic or international economic signals that may lead to shifts in currency valuations or commodity prices in the coming months.