USD index rallies to 4-year high

Thursday, September 25, 2014

US equity markets rebounded strongly yesterday with the Dow Jones index climbing more than 150 points (+0.9%) to retest 17210. The S&P 500 and Nasdaq indices also recovered, gaining 0.78% and 1.03%, respectively. In Asia, the Nikkei extended gains adding more than 200 points (+1.3%), while the Hang Seng index slid lower (-0.64%) towards 23,765.

Dow Jones Index

INDU Index (Dow Jones Industrial 2014-09-25 09-09-52

 

European equity markets edged higher in early trade this morning as the CAC, DAX and IBEX rose between 0.15% and 0.40%. The euro remained under pressure after falling sharply for third consecutive session towards 1.27 against the US dollar.

EURUSD Spot is heading towards 1.27

EURUSD Curncy (EUR-USD X-RATE)   2014-09-25 09-10-35

 

Energy: Brent front month futures remained under heavy pressure trading around $96.5 per barrel, as abundant crude oil supplies continue to weigh on market sentiment. The WTI front month contract has steadied around $92 per barrel, with investors awaiting key US economic data including Markit Services PMI for September and Durable Goods figures for August.

Gold extended losses towards $1200/ounce, reacting to stronger global equity markets and the recent robust US housing data, which curbed appetite for safe-haven. Gold has been heading towards January's lows as USD index has rallied to a 4-year high at 85.30.

USD Index hit a 4-year high

DXY Curncy (DOLLAR INDEX SPOT)   2014-09-25 09-07-53

  

Events for today:

 

1330

US

Aug

Durable Goods & New Orders

1330

US

w/e

Jobless Claims

1445

US

Sep

Markit Composite Index

1530

US

w/e

EIA Nat Gas

1600

US

Sep

KC Fed

  

All times UK Local Time

Topics: Equities, USD, Gold, Europe, Brent, EUR
More from: Myrto Sokou