Euro declines ahead of US jobs data
Euro declined in European trade against dollar as investors shun new positions ahead of the US jobs data for July.
Euro hit four-week highs earlier this after data showed resilience in the European economy against the pressures from the Ukrainian war.
EUR/USD fell 0.2% to 1.0225, after rising 0.8% yesterday, the first profit in three days, following weak US data.
European Data
Recent European data showed the European economy grew way more than expected in the second quarter, while inflation hit record highs.
Europe's economy grew by 0.7%, up from 0.6% in the first quarter and beating estimates of 0.2%.
European inflation surged to 8.9% in July, a record high, above estimates of 8.7%.
Such data bolstered the case for a 0.5% rate hike by the ECB in the next meetings, after already hiking it by 50 basis points in July.
US Data
Investors await crucial data on US labor sector later today, with the payrolls report expected to show the economy added 250 thousand new jobs, down from 372K in June, with unemployment expected at 3.6%.
Estimates
If US labor data proved strong, it'll bolster the case for a 0.75% hike by the Fed in September, in turn boosting the dollar against the common currency.
Oil declines to six-month low amid US demand concerns
Oil prices declined in European trade for another session with US crude hitting six-month lows while Brent plumbed three-week lows amid concerns about US demand.
Global Prices
US crude declined 1.3% to $89.65 a barrel, the lowest since February 18, while Brent shed 1.8% to $95.40 a barrel, the lowest since July 14.
US crude fell 3.2% on Wednesday, while Brent shed 2.9% after OPEC + decided to hike production next month.
US Stocks
Official US data showed crude inventories rose 4.5 million barrels to 426.6 million barrels last week, while analysts expected a drawdown of 1.4 million barrels.
Gasoline stocks rose 0.2 million barrels to 225.3 million barrels, while distillate stocks fell 2.4 million barrels to 109.3 million barrels.
US production steadied last week unchanged at 12.1 million bpd, the highest in two years.
OPEC Plus
OPEC + in association with Russia increased output by 100 thousand bpd in September, which supplies the market with much needed relief, however in a slower pace than previous months.
Gold prices rise to 4-week highs as dollar declines
Gold prices rose in European trade for another session, almost hitting four-week highs as the dollar loses ground against major rivals.
Haven demand is climbing on the precious metal as well amid concerns about global recession and US-China relations.
Prices Today
Gold prices rose 1.1% to $1,783 an ounce, after rising 0.2% yesterday, edging near four-week highs at $1,788.
The Dollar
The dollar index fell 0.2% today, resuming the decline to near four-week lows against major rivals, ahead of major US labor data today.
The data will offer strong clues on the US economy's health during the third quarter and will provide clues on the Fed's next move.
Estimates
Analysts expect gold prices to keep gaining ground amid ongoing short-term risks, even as US treasury yields rebound.
The SPDR
Gold holdings at the SPDR Gold Trust fell 2.9 tones yesterday to a total of 1,000 tones, the lowest since January 20.