The dollar index (DXY) rose by 0.21% today as Senate Majority Leader Thune indicated positive progress in government shutdown talks, countering early losses spurred by fears of a potential shutdown this weekend. The dollar’s recovery is supported by November factory orders increasing by 2.7% month-over-month, the largest rise in six months, despite a widening November trade deficit of $56.8 billion, exceeding expectations.
Initial US weekly unemployment claims fell by 1,000 to 209,000, slightly above expectations of 205,000, while continuing claims dropped by 38,000 to a six-month low of 1.827 million. The Eurozone saw a boost in economic confidence, with January’s indicator rising to a three-year high of 99.4, although December M3 money supply growth fell short of forecasts at 2.8% year-on-year.
In the precious metals market, February gold decreased by 2.13%, retreating from record highs spurred by the dollar’s rebound and positive government shutdown comments. Central bank demand remains strong, with China’s PBOC increasing reserves for the fourteenth consecutive month, adding 30,000 ounces in December.
