The dollar is poised to close the week on strong gains as markets wait for NFP later today. The general consensus is that unless the NFP data is disastrous, the FED will proceed with a rate hike later in March. Strong ADP emnicoployment on Wednesday though indicate that NFP today should be in line with expectations of 190k jobs created.
Today it has posted new 6 week highs against the JPY, pushing the pair up to 115.44, a level not seen since 19th oh January. The EUR was up 0.2 percent at $1.0594, but still down 0.3% for the week. Despite no change in the policy rate and the QE program, the EUR gained as President Mario Draghi added some upbeat flavors at the press conference and as the staff upgraded the inflation forecasts. EURJPY rose to its highest level since early February and up 0.8% for the week.
The big theme of these days is the slide in OIL prices. The U.S. crude inventory rose to 528 million barrels in the latest weekly petroleum status report, the largest since record keeping began, something which is driving the massive liquidation we are currently seeing. Oil is down to $49 a barrel from $55 last month.
Gold is also suffering as a result of overall Dollar strength. In fact, this is the longest losing streak since May, having posted 8 straight days of losses. Gold is Trading at $1197 an ounce, from $1260 just 10 days ago. Rightfully some, are smelling a buying opportunity at these levels.