ICM, the leading London-based FX and CFDs provider, reported that the greenback reversed Thursday’s gains and dropped to trade near a four-week low as Fed Chairman Jerome Powell disappointed dollar bulls. On the other hand, the US stock market continued higher with the SPX500 and Nasdaq closing at a record high on Friday.
Wall Street closed higher on Friday, with SPX500 and Nasdaq trading at a new record high on improved risk appetite. The SPX500 didn’t log a record high since January 26 as trade tensions weighed on the stock market since early 2018. As per ICM trading platform, the SPX gained 0.6% to 2874.69, the Nasdaq Composite rose 0.8% to 7949, and the Dow Jones closed higher at 25790. US stocks remain vulnerable to any new developments regarding the trade dispute between China and the United States, and Trump’s legal issues.
ICM highlighted that the dollar index which measures the greenback against a basket of major currencies fell on Friday to erase Thursday’s gains. The dollar fell as Fed Chairman Jerome Powell stated that there are no clear signs of inflation accelerating above 2 percent target, which hints that the Fed could adopt a policy of wait and see when rates hit neutral levels. DXY found heavy resistance at the 38.2% retracement of the swing lower from 96.98 to 94.93 and plunged post the comments to reach a low of 94.99. As per ICM trading platform, the EURUSD traded at a four-week high of $1.1653 during the Asian session.
Gold prices climbed to a two-week high as the dollar weakened. As per ICM trading platform, the gold ounce reached a high of $1208 after trading at a low of $1183 and finished the day at $1204 to set its biggest daily gain since March. On the other hand, the silver ounce rose from a one-week low of $14.47 to trade at a high of $14.87.
Oil prices posted their biggest weekly gain since June buoyed by the decline in the US crude oil inventories. As per ICM trading platform, the West Texas Intermediate crude futures traded at a three-week high of $69.31 and settled at $68.72 as investors seen taking profits ahead of the close. On the other hand, the Brent futures traded at a six-week high of $76.38 and closed at $76.09.