Yesterday we initially saw the dollar push higher after data showed that U.S. second-quarter growth was upwardly revised more than expected and that U.S. jobless claims rose less than expected last week. US pending home sales data failed to live up to the expectations and the dollar then trimmed its gains against the other major currencies yesterday.
The U.S. National Association of Realtors said its pending home sales index fell 2.4% last month, missing expectations for an increase of 0.3%. The index reading at 108.5 is the second lowest this year after January’s 105.4.
Oil prices rose nearly 3 percent, extending their rally on optimism over OPEC’s first output cut plan in eight years, despite some analysts’ doubts that the reduction would be enough to rebalance a heavily over-supplied market. The OPEC agreed on Wednesday to cut output to 32.5-33.0 million barrels per day from around 33.5 million, estimated by Reuters to be the output level in August. OPEC said other details of the plan will be known at its policy meeting in November, leaving unanswered when the agreement will come into effect, what new quotas for member countries will be and for what periods, and how compliance will be verified.
Gold prices rose a tad in Asia on Friday after a key manufacturing survey from China came in as expected and investors looked ahead to more remarks from Fed policymakers. Gold for December delivery rose 0.09% to $1,327.15.
Wall Street dropped yesterday, weighed down by Apple as well as selling in Wells Fargo, Citigroup and other major banks as investors worried about the health of Deutsche Bank.