The U.S. dollar hit a seven-week low against a basket of major currencies on Thursday, following the release of the minutes from the Federal Reserve’s July meeting which indicated that there were more policy committee members opposed to a near-term rate hike than those who were in favor of one.
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Higher interest rates can weigh on precious metals, which don’t offer a yield, making them less attractive to investors searching for richer-yielding securities.
The minutes showed USA policymakers were divided as to whether to hike interest rates in the near future, a move that would have hurt gold.
FED MIXED SIGNALS: Notes of the Fed’s July meeting showed officials saying a rate hike might be warranted but gave no indication of timing.
European markets were higher today, with the Spanish Ibex Index rising 0.16 percent, STOXX Europe 600 Index gaining 0.50 percent and German DAX 30 index gaining 0.36 percent.
The euro was down at 113.11 yen from 113.19 yen, while it rose to $1.1306 from $1.1287. The tentative outlook is positive for the Pound. The index of leading indicators for July is schedule for release at 10:00 a.m. ET. The tentative outlook is neutral.
“For the first time in quite a while, gains in middle-wage jobs actually outnumber gains in higher- and lower-wage jobs nationwide”, said Dudley.
Officials were generally upbeat about the USA economy but some expressed the need to keep their options open in the need of more data pointing to strength, the minutes showed. Hong Kong’s Hang Seng Index is up 0.9% while Shanghai Composite Index is down 0.17%.
In December past year, the Fed raised its benchmark lending rate from a record low near zero, where it had stood since the depths of the 2008 financial crisis. The rise in the yen to about 99 to the dollar has made imports cheaper but Japanese goods more expensive for foreign customers, hurting an economic recovery. Exporters were among the worst performers: Toyota lost 1.67%, Nissan tumbled 2.56%.
Offshore one-year non-deliverable forwards contracts (NDFs), considered the best available proxy for forward-looking market expectations of the yuan’s value, traded at 6.764, 2.02 percent weaker than the midpoint.
Brent crude prices rose to their highest since July 4 as the world’s biggest producers prepared to discuss a possible freeze in production levels. You have now viewed your allowance of free articles.
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Data showed the number of Americans filing for unemployment benefits fell more than expected last week. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.
