Friday’s data continues to push the dollar upwards


U.S. stocks ended trading Tuesday with a drop as US-North Korea nuclear tensions escalated. Dow Jones declined 0.15% to 22 085.34 points. The S & P 500 declined by six points to 2474.92. The lowest in the index was the stocks of raw materials. Technological Nasdaq declined 0.21 percentage points, closing at 6370.46 points. Shares of Michael Kors and Ralph Lauren jumped 21.5% and 13.3%, respectively. The reason for the strong performance was earnings report, which surpassed analysts’ forecasts.

The dollar rose on Tuesday to a 2-week high after being backed by the strong economic news that came from the US. The US Bureau of Labor Statistics released jobs data for June, which surpassed preliminary estimates, reaching 6.16 million. Economist forecasts were for 5.77 million jobs. At the same time, the May data was revised upwards to 5.70 million. The news of IBD/TIPP Economic Optimism Index also proved better than expected. The indicator, which measures consumers’ moods depending on the economic conditions in the country, rose to 52.2 points versus 50.2 a month earlier. As a result, the dollar index showing the change in green money against six major currencies rose 0.33% to 93.63 points – the highest level in the past two weeks.

Gold fell, pressed by the appreciation of the dollar. The yellow metal declined 0.2% to $ 1,261.74 per troy ounce. But the losses were limited due to recent comments by Federal Reserve officials, who believe that unsatisfactory inflation-related data in the country could shadow future expected increases in interest rates. On Monday, James Bullard, president of the Federal Reserve for St. Louis, said that “current interest rates will remain unchanged in the short term.” Unlike gold, silver futures rose by as much as $ 16,397 per troy ounce. Platinum rose 0.3 percent to $ 974.60 an ounce.

Oil has ended trading down due to investor concerns that increased production in some of the bigger countries has undermined the effect of Saudi Arabia’s intention to cut its exports to Asian countries next month. Black gold retreated to $ 49.17 a barrel. The Brent variety went down by 36 cents to $ 52.02 a barrel. Representatives from Saudi Arabia said that as of September, the country intends to reduce oil supplies to Asian countries by 10%.

“The reality is that OPEC can not succeed in imposing production constraints,” said Gao Jian, an analyst at SCI International. “This has been a problem for the cartel for many years, and I think it’s very difficult to deal with it,” Jian added.