**Dollar Index Rises Amid Economic Data and Crude Oil Surge**
On Thursday, the U.S. Dollar Index (DXY) increased by 0.43%, driven by rising crude oil prices and stronger Treasury yields, improving the dollar’s interest rate differentials. Key economic data revealed weekly jobless claims unchanged at 213,000, below expectations of 215,000, while Q4 nonfarm productivity rose by 2.8%, exceeding forecasts of 1.9%. Richmond Fed President Tom Barkin noted expectations of “high inflation” in the coming months, contributing to the dollar’s strength.
In the Eurozone, retail sales unexpectedly fell by 0.1% in January, contrary to an anticipated increase of 0.3%. The euro slumped 0.32% against the dollar amid the negative retail figures and rising energy prices, including crude hitting a 19.5-month high. Additionally, the Bank of Japan’s (BOJ) potential rate hike remains uncertain amid ongoing Middle East tensions, impacting Japan’s economy reliant on energy imports.
Precious metals also declined on Thursday, with gold dropping 1.09% and silver down 1.21%, as a stronger dollar and rising U.S. bond yields weighed on prices. Despite geopolitical tensions in the Middle East, which typically elevate demand for safe-haven assets, recent hawkish comments from the Fed and improved jobless claims overshadowed these concerns.
