The US dollar was trading slightly lower against a basket of currencies on Friday, but the best way to describe the tone of trades is indecisive. The US dollar index closed Friday’s session at 98.39, with a 0.12% weekly decline. The greenback was under pressure after the release of a mixed report on the US jobs market in August, which reinforced the view of a slowing economic expansion and the possibility of more interest rate cuts from the US Federal Reserve. Against the major currencies, the US dollar was mixed. The euro was trading flat to lower.
The common currency ended the trading week at 1.1029, posting a 0.2% fall on a weekly
basis. The US dollar began to erase most of its losses after Federal Reserve Chairman Jerome Powell said that the US regulator was not expecting a recession and that the most likely outlook was still moderate growth, a strong labor market and inflation continuing to recover. Overall, markets still see a 92% chance that the US Federal Reserve will cut interest rates at its policy meeting later this month. Meanwhile, the British pound fell after the High Court in London ruled that Prime Minister Boris Johnson’s attempt to close parliament next week was legal. The ruling is expected to be appealed in the Supreme Court. Lawmakers took control of Parliament this week, and
denied Johnson’s request for a snap election, voting to force Johnson to put off Brexit
for the third time. Sterling finished the trading session lower
on Friday at 1.2282. For the week, the UK currency lost 0.7%.
In the meantime, the crypto market saw red on Friday, with Bitcoin price plunging by
2.5% during the day to finish at 10,317.0. However, for the week, the cryptocurrency
No.1 posted an 8.5% rise. Bitcoin suffered a sharp sell-off on Friday,
as US Federal Reserve chairman Jerome Powell downplayed demand for cryptocurrencies. He
said there was no clear demand for a digital currency. He added that, if one was developed,
it would have to be extremely cyber secure, raising fears that widestream adoption of
cryptos would draw intense regulatory scrutiny. Meanwhile, oil prices saw the biggest weekly
gains since July backed by Powell’s vow to support the US economic expansion and amid
a decline in the number of active US drilling rigs.
The global benchmark, November Brent crude finished at $61.54 a barrel on Friday. It
tallied a weekly rise of 3.9%. New York-traded West Texas Intermediate crude
for October delivery settled at $56.52 a barrel, logging a weekly gain of 2.6%, based on the
most-active contract. Meanwhile, buying sentiment towards gold was
dealt a heavy blow as renewed optimism over US-China trade talks encouraged investors
to offload safe-haven assets and chase riskier investments.
Gold price declined on Friday to finish at 1,515.50 a troy ounce. For the week, it lost