Yesterday, despite a thin trade with stock exchanges being closed for New Year’s day, the USD regained momentum lost during the last two weeks against the other major currencies.
The greenback finished 2016 at 14-year highs on market expectations that the Fed will increase rates three times this year, and that incoming President Trump will stoke growth and inflation with a program of investment in infrastructure.
Crude oil prices are up; Brent oil is trading at $57.15/barrel. Prices were buoyed by hopes that a deal between OPEC and non-OPEC members to cut production, which kicked in on Sunday, will be effective in draining the global supply glut.
Gold prices were slightly lower yesterday, dropping 0.21%. The major dip in hte US dollar index late this week is encouraging buying in the gold and silver.
US, UK, Hong Kong and European markets are back to normal trading hours today. Japan and New Zealand are still closed for New Year’s Day.