Dollar gains on Fed rates view; global stocks eke out gains

by   |  VIEW 491

Dollar gains on Fed rates view; global stocks eke out gains

On Wednesday, the 18th of December 2019, the American dollar scored robust gains against its British and Eurozone counterparts, as a hawkish wind of change in US Commerce & Labour Department data which unveiled a raft of upbeat financial readings this week thus far, had plundered possibilities of an interest-rate cut in a near- to intermediate-term outlook, while a gauge of global equity indices had extended their rallies over optimism of a nearing Sino-US interim trade deal, though analysts urged investors to hold their horses until terms of the interim trade deal were fully fledged.

As the US Dollar index (DXY) measured against a basket of six major currencies in an average, had shrugged off its earlier losses and wrapped up Wednesday’s (December 18th) market 0.23 per cent higher at 97.40 amid narrowing down possibilities of a Fed rate cut on 2020, safe-haven spot gold futures’ prices edged slightly lower to $1475.20 per ounce.

Meanwhile, MSCI’s gauge of global stocks that keeps track of 49 stock exchanges across the globe gained 0.03 per cent following a overnight decline in Asian markets, while MSCI’s emerging market index gained 0.55 per cent with Brazil’s benchmark Bovespa hitting its all-time record closure.

Besides, citing cautions over American dollar’s outlook in a near-term outlook, a senior macro strategist at Nordea Asset Management in Luxembourg, Sebastian Galy was quoted saying on Wednesday’s (December 18th) market wrap-up that currency and equity markets had not yet been out of the woods amid persistent pessimisms over the trade front.

Citing statistics, on Wednesday’s (December 18th) market wrap-up, the American dollar gained 0.33 per cent against Euro to $1.1120 and 0.39 per cent against Great Britain Pound to $1.3076, while the US Dollar remained almost flatlined against Australian Dollar and Japanese Yen.

Nonetheless, the American dollar shed 0.34 per cent against its crude oil price dependent Canadian counterpart to $1.3132 following a surprise drop in US crude inventory last week.