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US Dollar, The King

29 Sep,2022
US Dollar, The King

Traders are waiting to see if any decline in the dollar will be sustained, or it's just another blip before more upward movement. The factors that boosted the greenback- elevated inflation and a hawkish Federal Reserve- are still in play.

- A slew of Fed officials reiterated this week that the central bank is set to keep raising rates sharply this year, as it struggles to combat inflation reaching a 40-year peak.

- The European Union proposed a new round of sanctions against Russia over its invasion of Ukraine, including tighter trade restrictions, more individual black listings and an oil price cap.

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Equities:

- Wall Street staged a partial comeback on Wednesday with stocks surging around 2%.

- Weighing on growth stocks was Apple Inc (NASDAQ:AAPL), which was down about 1.3% on a report the tech company was dropping its plans to boost production of the latest model of its flagship “iPhone”.

- Wall Street's rebound gained momentum over the day, with the S&P 500 Index up about 1.97% % to 3,719.03 after it fell to a two year low on Tuesday. The Dow Jones Industrial Average also gained 1.71% % to 29,693 and the Nasdaq Composite was up about 1.68% % to 11,479.

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Currency Market:

- The U.S. dollar resumed its seemingly relentless march higher. The Dollar Index rose 0.8% to 113.438, rebounding close to its recent two-decade high of 114.653 after its worst session in more than two years.

- EUR/USD fell 0.7% to 0.9667, as the U.S. dollar regained its footing after the previous session’s losses. The British currency jumped the most since mid-June as a result, but this bounce hasn’t lasted long, with GBP/USD dropping 0.9% to 1.0787.

- USD/JPY rose 0.4% to 144.69, remaining near the crucial 145 level, while AUD/USD fell 0.9% to 0.6466, after a new monthly measure of Australian consumer prices on Thursday showed annual inflation eased slightly in August from July. USD/CNY slipped slightly to 7.1983.

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Commodities: Gold:

- Gold prices fell slightly after recovering sharply from multi-year lows, as markets remained wary of another resurgence in the dollar and Treasury yields.

- Spot gold prices fell 0.4% to $1,641.48 an ounce, while gold futures fell 0.3% to $1,664.35 an ounce.

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Commodities: Oil:

- Oil prices fell after gaining more than $3 in the prior session, with a strong dollar capping oil demand and concerns over the faltering global economic outlook clouding market sentiment.

- Brent crude futures fell 1%, to $88.41 per barrel, while WTI crude futures dropped by 1%, to $81.33 per barrel.
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