The USD recovered some of the previously lost ground yesterday but has so far failed to recover 100 levels on the US Dollar index (DXY), the DXY is an index measuring dollar strength against a basket of currencies. DXY is currently trading at 99.75 at the time of writing.
The dollar index pulled back from three-week lows on Wednesday, as the soaring cable retreated off its highs. Sterling surged after British Prime Minister Theresa May called an early general election ahead of Brexit negotiations.
In his comments to the Financial Times, US Treasury Secretary Steven Mnuchin, helped the US Dollar stir away from its recent lows. The US Dollar index (DXY) had recently tested lows of 100 seen at the end of last week. Last week the USD suffered losses when President Trump was quoted as saying that the USD was too strong.
Geopolitical tensions take over market sentiment and we see it refelcted in Gold, the price of which surged by 1.6% over yesterday’s trading session. The yellow metal surged at least $20 higher to $1275.01 throughout yesterday’s session and has this morning already attempted $1279.66.
US Dollar strength continued into week’s open late last night. Friday’s much awaited US Nonfarm Payrolls (NFP) number for March was a disappointment because the US economy created 98K jobs in March, only half of what was expected, and compared to a previous 219k in the previous month.