FXstreet.com (Córdoba) - Greenback recovered previous losses and rose to the highest level of the week across the board. Stocks posted losses at Wall Street and also commodities retreated. Oil tumbled 3% and gold fell for the first time after five days with gains. Cable was among the best performers of the day.
Dollar up, everything else down
The inverse correlation between Dollar and stocks and commodities remains intact. The Dow Jones fell 0.92%, crude oil lost 3% and gold posted losses for the first time in a week, on the other side, Greenback rose across the board.
Timothy Geithner said one more time that it is in the interest of the government to have a strong dollar. Jobless claims came better than expected, falling more than forecast but investors remained cautious. An increase in crude oil inventories put pressure in crude oil prices that tumbled and ended below $77 a barrel.
The Northern Trust Economic Research Department affirms on jobless claims data: Total claims which include recipients under the special programs, Extended Benefits Program and Emergency Unemployment Compensation Program, were 9.81 million during the week ended October 24, down from 10 million during the week ended October 3. These data underscore the positive developments in the labor market amid the gloomy news about a climbing unemployment rate. Initial jobless claims data are a leading indicator, while the overall jobless rate is a lagging economic indicator.
The Dollar rose across the board to the highest level since Monday. EUR/USD failed to hold above 1.5000 and tumbled to 1.4819 (intra-week low). USD/JPY peaked at 90.60 posting a one -week high. The Yen finished mix across the board.
Cable ended at the same opening levels against the Dollar, but rose to the rest of the currencies. On the other side, currencies tied to commodities fell sharply. AUD/USD rebounded at 0.9370 (fresh 15-month high) and tumbled to test the support at 0.9200.