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Daily Review 22.08.2016

Dollar gains ground, stocks dip as support for Fed rate hike soars

The US dollar retreated from its near eight-week low on Friday as it strengthened against euro and Swiss franc on Friday while stocks in major markets slumped after more official of the US Federal Reserve bet on the possible rate hike.

San Francisco Fed President John Williams reiterated that it could be costly if the central bank waited too long to raise rates and that a possible rate hike should be effective come September.

The greenback stood tall against major rivals on the revived Fed rate hike expectations as dollar index added 0.35% to close at 94.480, erasing the near eight week lows touched on Tuesday.

The euro was down 0.3% and closed at 1.1318, below its week-high of 1.1365 while the Swiss fell 0.5% to close at 0.9589. Against the yen, the dollar was last up 0.33%, closing at 100.20 yen.

Meanwhile, stocks indices in Wall Street edged lower as the Dow Jones industrial average lost 45.13, or 0.24%, to close at 18 552.57, US benchmark S&P 500 dropped 3.15 points, or 0.14%, to finish 2 183.87 while NASDAQ composite fell 1.77 points, or 0.3%, to settle at 5 238.38.

Stocks market around the world fell 0.4%.

Precious metals fall, oil mixed on revived Fed rate hike hopes

Commodities are no exemption on the effect of the views of the Fed’s official to increase interest rates this year.

Gold snapped its four-day streak of gains, dropping 1 % on Friday, but was still on track for its second straight week higher.

Spot gold dived from $1 340.91 to a session low of $1 3337.37 per ounce, falling as much as 1.5%. Spot silver dropped 2.6 %, closing at $19.23 an ounce, the lowest since July 21, while Spot platinum was down 1.27 percent, settling at $1 110.74.

In oil, the International benchmark Brent crude oil futures dropped 17 cents to close at $50.72 per barrel, after touching a session peak of $51.22.

US West Texas Intermediate crude gained more than 9% from its previous close of $44.19 as it added 30 cents to close at $48.52.

* The above data have been obtained in part from third parties, including other websites, and are presented "AS-IS". Users should bear in mind that the information published in this review may be subject to changes in face of constantly changing market trends. This information should not be construed as advice and / or substitute for professional marketing consulting nor can it take into account the special needs of each trader. Moreover, this information should not be considered a recommendation to invest and / or execute transactions and / or deposits of any kind.
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