Market dynamics: currencies and commodities (September 30 – October 4)

The US dollar inched lower on Friday, giving up gains fueled by a solid US jobs report that slightly underperformed expectations, as investors worried about political risk in the United States and ongoing trade talks with China. The greenback hit session highs following the jobs report, after trading lower for most of the session. But by the close of trading, the dollar’s rally faded. The US Dollar Index, which tracks the greenback versus a bundle main competitors, declined to close at 98.81 on Friday, losing 0.3% for the week. Data showed that US economy added 136,000 new jobs in September, slightly less than forecast, and the pace of job growth fell to the slowest in four months, but the US unemployment rate dropped to 3.5%, the lowest rate since December 1969. A drop in US unemployment in September pushed traders to pare bets the Federal Reserve will cut rates at both of its two upcoming meetings. Meanwhile, the euro to dollar pair was under pressure at the end of the last week as the World Trade Organization gave the United States
the go-ahead to hit $7.5 billion worth EU goods with tariffs annually. The pair saw a bit of selling on Friday also following the US jobs report. However, buyers stepped in near 1.0966 support to keep the pair within a range. It ended the week at 1.0978 with a 0.5% weekly gain. Meanwhile, the British pound initially fell during the Friday session but then rebounded. Sterling closed the week at 1.2333 level, posting a slight 0.08% weekly rise. However, the UK currency was under pressure as French President Emmanuel Macron told British Prime Minister Boris Johnson on Sunday that the EU will decide at the end of the week whether or not a Brexit deal is going to be
possible. Meanwhile, in the crypto market, Bitcoin price fell by 1% on Friday to close the week at 8,170.0. However, the crypto king managed to post a weekly gain of 0.8%. Despite the recent turn of events, the cryptocurrency is still 2019’s best performing asset according to recent analysts’ reports. Meanwhile, in the commodity market, both Brent and WTI moved into positive territory to end the week on a higher note as demand worries and the restoration of Saudi production took center stage. The December Brent contract posted a 66-cent gain on Friday to close at $58.37 per barrel. For the week, Brent was down by 5.7 percent. Meanwhile, November WTI futures added 36 cents on Friday to settle at $52.81 per barrel. The contract peaked at $53.35 and bottomed out at $52.29. Against the September 27 settlement, WTI was down by 5.5 percent. Meantime, Gold price moved sideways edging higher on Friday, as the US payroll report had enough positive information to keep the dollar stable. Gold price ended at 1,512.90 a troy ounce on Friday, posting a 0.1% weekly gain.

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