USD Headed For Weekly Loss as Gold Hits Near Two Month High

The dollar headed for a weekly loss and gold traded at the highest price in almost two months as investors continued to assess whether market moves since the U.S. election have gone too far. European stocks and U.S. equity futures climbed and Chinese shares fell after data on exports.

The U.S. currency fluctuated after touching the lowest point in almost a month on Thursday. The Stoxx Euro 600 Index rebounded from its biggest drop since the end of November as Federal Reserve Chair Janet Yellen reiterated that the U.S. economy is doing well. The Shanghai Composite Index fell to its lowest level of the year as data showed China’s overseas shipments remain subdued. Gold increased for a fifth day.

In a week characterized by a reversal in many of the market moves seen since Donald Trump’s election, Friday will see the release of a report on U.S. holiday-season retail sales as well as earnings from Bank of America Corp., JPMorgan Chase & Co., and Wells Fargo & Co. Since Trump’s victory, the dollar and global equities have rallied, while bonds sold off amid expectations for improved U.S. growth. Investors unwound some of those wagers Thursday after the president-elect’s first press conference since the November victory.

Bloomberg

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.