The US dollar is better bid before the US jobs figures. The US dollar index recovered to the 93 mark, as solid demand in US treasuries continues weighing on the US sovereign yields.
The greenback continues determining the overall direction across the currency markets.
The EURUSD surged to 1.1917 on weaker dollar on Thursday, but the pair failed to consolidate gains above the 1.19 mark. At these levels, the euro’s rally against the greenback shows signs of fatigue as the market is already swamped with stretched long euro and short dollar positions hinting that the pair could easily settle within the 1.17/1.16 range if the US dollar paused its race to the bottom. Released this morning, German industrial production and exports printed a better-than-expected performance in June. But the data alone will unlikely have an impact on the overall direction of the EURUSD parity this Friday as the US dollar will likely dictate the way before the weekly closing bell.
Cable recorded a quick pop to 1.3185 as the Bank of England (BoE) expressed an unfavorable opinion regarding the negative interest rates at Thursday’s meeting. But the sterling’s advance against the US dollar is majorly driven by the USD sell-off, and any change in direction in the US dollar appetite should easily reverse gains and send the pair below the $1.30 mark on lingering Brexit and Covid risks to the British economy.
Elsewhere, gold extended its spectacular rally to a new high, $2075 per oz, and silver hit $29 per oz. Interestingly, there are no signs of exhaustion in both markets, whereas the overstretched rally calls for a decent downside correction sooner rather than later.
WTI crude consolidates a touch below the $42 per barrel. Solid offers are eyed near $43 pb, the 200-day moving average.
