Dollar holding at firmer levels ahead of PCE
Yesterday’s better-than-expected US GDP number, along with some stabilisation in the jobless claims data, saw the Dollar make further gains and close stronger on the day. The Dollar has opened fairly flat this morning at 1.1077 against the Euro, 1.3167 against the Pound, and 144.83 against the Yen ahead of today’s key US PCE price index number. Markets are expecting a 2.7% print, up from last month’s 2.6% number, which could provide some further respite for the Dollar in the short term. US bond yields ticked higher yesterday while Wall Street ended mixed. EM currencies came under some pressure from the stronger Dollar but the Rand once more showed surprising resilience to hold below the R17.80 mark. The Rand is currently trading at R17.76 in a very quiet Asian trading session and in line with flat EM currencies.
Precious metals close firmer despite the stronger Dollar
Gold closed at $2,521 last night despite the stronger move in the Dollar, while Platinum and Palladium both showed some decent gains. Gold has eased back to $2,514 this morning with traders trimming some long positions before the US inflation indicator later today. Platinum and Palladium, along with the major base metals, are all showing gains this morning, while Brent crude is back above the $80.00 mark. The disruption to supply out of Libya, as well as expected Iraqi production cuts, is providing some support to the price of oil.
