The dollar index (DXY) increased by 0.36% on Thursday, bolstered by a decline in equity markets and comments from President Trump regarding escalating tensions in Iran, heightening demand for the dollar as a safe-haven asset. The U.S. weekly initial unemployment claims dropped by 9,000 to a two-and-a-half-month low of 202,000, contrary to expectations of an increase to 212,000, and the February trade deficit was reported at $57.3 billion, narrower than the anticipated $60.6 billion.
In response to these economic indicators, swaps markets are pricing a 1% chance of a 25 basis point rate hike at the upcoming April 28-29 FOMC meeting, while the Bank of Japan is projected to have a 67% chance of a rate hike at its next meeting. Meanwhile, gold and silver prices fell sharply on Thursday, with gold down 2.77% and silver down 4.15%, pressured by a stronger dollar and rising crude oil prices, which surged by 11%.
