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USD Advances On Strong Economic News, Supporting December Rate Hike

By IFC MarketsMarket OverviewNov 26, 2015 09:03AM ET
www.investing.com/analysis/quiet-trading-ahead-of-thanksgiving-day-272645
USD Advances On Strong Economic News, Supporting December Rate Hike
By IFC Markets   |  Nov 26, 2015 09:03AM ET
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The US stocks were flat yesterday anticipating Thanksgiving Day. The trading was quiet as investors stayed away of the markets. The dollar index live data show the index, which is a measure of the dollar value against a basket six major currencies, advanced 0.02% to 99.813 on strong economic news supporting the December interest rate hike. During the trading day it touched the 8-month high of 100.07. Although the October consumer spending increased less than expected, the rise in durable goods orders exceeded 3 times the expectations and the benefits claims in the labour market fell as well. Dow Jones industrial average advanced 0.01%, Nasdaq Composite rose 0.26%. S&P 500 was almost flat, losing 0.01% to 2088.87 with 6 out of 10 its sectors being in the red. Energy (-0.82%) and basic materials (-0.74%) were leading the decliners while healthcare sector (+0.64%) was the top performer. Today the US markets are closed due to the Thanksgiving Day and so will be closed most of Friday afternoon.

European stocks were in the black on Wednesday after the ECB report came out. The euro fell to the 7-month low of $1.0578 against the US dollar early in the morning on the news the ECB was planning to charge the banks for hoarding cash, but later rebounded to $1.06, closing 0.2% lower. FTSEurofirst edged up 1.3% while UK’s FTSE 100 advanced 1%. Dax 30 index added 1.5% supported by news that the retailer Metro and construction company Lafargeholcim (OTC:HCMLY) were planning to pay out increased dividends. The travel and leisure sector was on the rise due to the rally in Thomas Cook's (NS:THOM) stocks (+9.6% on its strong financial statements) despite the heightened tensions in the Middle East region with FTSE 350 travel and leisure index edging up 1.7%. Today in the Eurozone, no important data is expected to come out.

Asian stocks were on the rise today in a thin trade. The Japan’s Nikkei 225 closed 0.5% higher, Hang Seng advanced 0.6%.

Spot gold fell 0.4% to $1,070.46 an ounce on Wednesday on strong US economic data supporting the US dollar but is rebounding today, still being near its multi-year lows. For the first time in a long period, the position in gold shifted to net short. The December gold futures dropped 0.4% too to $1,070 an ounce.

Crude oil edged lower on Thursday amid the strengthening US dollar and concerns about the supply glut with Brent crude traded at $45.83 a barrel and WTI crude traded at $42.94 a barrel. Previously, OPEC said it would keep the high oil production volumes in order to secure its market share raising fears of some investors that oil prices may fall to as low as $20 a barrel. On the other hand, oil is supported by the smaller increase in US oil inventories in a week to November 20 and the falling US oil rig counts.

Platinum was falling to a 7-year low of $827.75 an ounce but later rebounded, closing 0.8% higher at $846.35.

USD Advances On Strong Economic News, Supporting December Rate Hike
 

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USD Advances On Strong Economic News, Supporting December Rate Hike

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Trading Systems
Trading Systems Nov 26, 2015 3:00PM ET
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And then ... ***** goes the right hike and USD becomes a lead balloon
 
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