Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The dollar index on Friday rose by +0.58% and recovered mildly from Wednesday’s 5-week low. Still, the dollar closed -0.9% lower on the week. The dollar on Friday saw support from the stronger-than-expected US consumer sentiment report.
On the surface, the University of Michigan’s latest survey of consumer sentiment was largely positive, though the details are arguably less encouraging. Overall sentiment rose for the second month in a row and came in just above consensus expectations.
Gold futures ended the last trading day of week holding to the upward trend, taking advantage of the expectations that appeared throughout this week of the possibility of a decline in the pace according to which the Federal Reserve is proceeding in raising interest rates. And gold fell to its lowest level during Friday’s session at $ 1799, compared to the highest levels that recorded the same daily closing level.
The precious metal has exploited US data that shed light on a decline of the inflation rate in the United States, which diminishes the chances of a rise in the return on the dollar.
Economic Data
There was carry-over bearish sentiment for the dollar based on the favorable CPI and PPI reports seen mid-week, which put Fed policy in a more dovish light. The University of Michigan reported that its preliminary-Aug US consumer sentiment index rose by +3.6 points to a 3-month high of 55.1, which was stronger than market expectations of +1.0 point to 52.5.
Other Developments
Brent crude futures fell $1.45, or 1.5%, to settle at $98.15 a barrel, while WTI crude fell $2.25, or 2.4%, to settle at $92.09 a barrel. Both contracts gained more than 2% on Thursday. Oil prices plunged around 2% on Friday, on expectations that supply disruptions in the US Gulf of Mexico would be short-term, while recession fears clouded the demand outlook. Futures, however, were still on track for a weekly gain.
Brent gained 3.4% this week after last week’s 14% tumble on fears that rising inflation and interest rates will hit economic growth and demand for fuel. WTI rose 3.5%. Crews were expected to replace a damaged oil pipeline piece by the end of the day on Friday, a Louisiana port official said, allowing for the resumption of production at seven offshore US Gulf of Mexico oil platforms.
Also Read
Oil price retreats 2% on US Gulf of Mexico supply news
Gogoro’s Q2 earnings signal cautious outlook for the second half
.US dollar recovers some of this week’s losses
US shares rise for fourth straight day
Gold gains on retreating Treasury yields
Fortuna Silver Earnings Retreat On Weaker Silver Price
Russian economy steeply contracts on war, sanctions
EUR/USD down from five-week highs
Friday’s US Consumer Confidence Gives Relief To US Economy
Fed’s Barkin: There’s more to come to get rates into restrictive territory
