The Conference Board said its consumer confidence index rose to 101.1 this month, an 11-month high.
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Still, the poll of over 70 strategists taken this week showed the euro is forecast to weaken 3 percent against the dollar in a year from Thursday’s US$1.11. “If the jobs data is going to be good, gold will fall to $1,260-$1,270 levels as markets will hope for a rate hike in September”. While prospects for higher rates can boost the dollar, they depress the value of precious metals that are priced in the currency.
Apple dragged down U.S. technology stocks after European Union antitrust regulators ordered the iPhone maker to pay about $14.5 billion in back taxes to the Irish government.
The dollar index, which measures the greenback against a basket of six major rivals, strengthened to a three-week high of 96.143 as investors looked ahead to Friday’s jobs data.
“Stocks are extended and not cheap, and there’s no immediate catalyst other than momentum to make stocks go higher”, said Jim Awad, managing director at Plimsoll Mark Capital in NY, on the dip in United States shares overall.
On Wednesday, Boston Fed President Eric Rosengren said the Fed should consider that quicker interest rate rises over time could stave off risks to the economy, while Chicago Fed President Charles Evans said he is increasingly convinced that U.S. economic growth has slowed permanently.
Expectations for the timing of a Fed rate hike have see-sawed, sending the dollar down nearly 3 percent this year after making near double-digit gains in calendar 2015 and 2014.
The average fee for a 30-year mortgage fell to 0.5 point this week from 0.6 point last week. Nasdaq 100 futures were off 0.75 point at 4,785.
The dollar, on the other hand, fared better against commodity currencies, which were hit by the sharp drop in crude oil prices. Benchmark 10-year US Treasury yields were last at 1.570%, from a yield of 1.566% late Monday.
Brent crude settled down 89 cents, or 1.81%, at $48.37 per barrel.
– US ADP non-farm payrolls – often seen as a precursor to Friday’s numbers – were a better-than-expected 177,000. Palladium rose 0.9 percent after touching a five-week low of $670.72 in the previous session.
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Gold for December delivery closed down 0.4% at $1,311.40 a troy ounce on the Comex division of the New York Mercantile Exchange, the lowest price since June 23.
