The U.S. dollar was sold off on Friday on expectation that the Federal Reserve will raise rates at a more gradual pace then initially thought.
Traders are now turning their focus on President Trump’s fiscal spending plans and how he intends to push his through his tax cuts initiatives.
The greenback was down 0.5 percent against the Japanese yen to ¥112.71 and 0.3 percent lower against the British pound at $1.2380. The sterling has seen higher highs each day which would appear to indicate that their is further strength in the currency ahead.
In energy, WTI settled up 0.06% or 3 cents to $48.78 a barrel on the New York Mercantile Exchange while Brent, the global benchmark was unchanged at $51.74 a barrel on ICE Futures Europe, snapping a two-week losing streak.
Oil prices remain near a 3½ month low even while oil producers try to reassure the market that they are committed to cutting production. However, higher oil prices has seen producers outside the agreement ramp up production driving the oil price lower.
The number of active oil rigs in the U.S. rose to 631 last week, a rise of nine-straight weeks.
Metal prices rose on Friday on the back of a weaker U.S. dollar. Gold for April delivery was up 0.3% to $1,230.20 a troy ounce on the New York Mercantile Exchange, closing at a two-week high. Copper also rose 0.5% to $2.6915 a pound, also it’s highest level in two weeks.
Copper prices could also benefit from supply disruptions at mines in Chile and Peru where workers have gone on strike indefinitely over wage demands.
Chart of the Day
Source: @macrocredit
