The dollar index (DXY) rose by 0.09% on Thursday, reaching a 2-week high, driven by stronger-than-expected labor market data. Weekly jobless claims fell by 5,000 to 227,000, an 8-week low, contrary to predictions of a rise to 235,000. However, continuing claims increased by 10,000 to 1.965 million, reflecting persistent challenges for unemployed individuals.
St. Louis Fed President Musalem indicated he sees upside risks to inflation, which contributed to the dollar’s strength, as markets anticipate a 7% chance of a -25 basis point rate cut at the upcoming FOMC meeting. Meanwhile, the euro declined by 0.22% amid disappointing Eurozone economic news, particularly a 0.7% decrease in Italy’s industrial production for May.
In the precious metals market, August gold closed up 0.14% as concerns over US trade policy and inflation risks heightened safe-haven demand. The People’s Bank of China’s addition of 70,000 MT of gold to its reserves in June supported prices, while ETF silver holdings reached a 2.75-year high.
