Rate hike weighs on dollar
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Wall Street finished in the green as markets took a pause from a recent stretch of extreme volatility on a quiet day of trading. The Dow Jones rose by 0.37%, the S&P 500 by 0.33%, and the NASDAQ added 0.26% to its value. Google shares rose 1.62%, closing at $728.28.
currencies as uncertainty over the timing of the next U.S. rate hike continues to dampen demand for the greenback. Yesterday, the JOLTS Job Openings came out at 5.79M vs. 5.67M forecast. Today, the Unemployment Claims is expected at 269K vs.267K previously.
Gold rose 1.46%, closing at $1,262 an ounce, as the pace of hiring by U.S. employers in April decelerated to a two-year low in April, pushing the dollar down to fresh monthly lows. Crude Oil rose 2.36%, closing at $51.55 a barrel. Yesterday, the Crude Oil Inventories came out as expected at -3.2M.
The euro rose 0.41% versus the dollar, closing at 1.1404. Technically, according to the Daily chart, the pair is trading below the resistance at 1.1440 and close to the upper band of the Bollinger bands. Breaching above these levels may lead to a rise towards 1.1480. However, failing to do so may drop the pair down towards 1.11300 areas once again. Today, European Central Bank President Mario Draghi is due to speak.
The Pound fell slightly versus the dollar, closing at 1.4514. Technically, according to the daily chart, the pair is trading below the 20-day Moving Average with the Momentum indicator below 0. Holding below these levels may lead to a drop back towards 1.4400 areas. Alternatively, breaching above these levels could cause a reversal towards 1.4600 areas. Yesterday, the Manufacturing Production came out better than expected with 2.3% vs. 0.0% forecast.