Dollar momentum yesterday saw the dollar index surge to the highest level since March 2003 as fears about slowing global growth and a global dollar funding shortage see demand soar. The EURUSD pair briefly fell below 1.0500 overnight before rebounding sharply higher as concerns about Greece reverberate through the Eurozone economy. After peaking, the dollar has since pulled back from strength against major peers, losing ground across the board. This morning’s weaker dollar is fueling gains in dollar-denominated commodities as evidenced by the latest moves in precious metals and energy. This has caused gold prices to spike back to the upside, trending back above $1160 per troy ounce with silver mirroring the move higher. Oil prices are also strengthening despite another Department of Energy inventory figure that showed greater than expected expansion in crude oil stocks.
Dollar Strength Fizzles Out
Daily Analysis - 12/03/2015