Dollar extends recovery after strong data
Dollar rose in European trade against a basket of major rivals, recouping for the second day from six-month lows.
Recent strong US data underpinned chances of a 0.75% rate hike once more next week when the Federal Reserve officially convenes.
The Index
The dollar index rose 0.3% to 105.50, with a session-low at 105.02, after closing up 0.75% yesterday, the first profit in four days away from six-month lows at 104.11.
Services
Recent US data showed US services PMI rose unexpectedly last month, showing the services sector remains vibrant.
US Services PMI rose to 56.5 from 54.4 in the previous reading, easily beating estimates of 53.5.
Such data raised chances of a 0.75% rate hike by the Federal Reserve from 18% to 22% next week.
Fed's Meeting
The Federal Reserve is meeting next week to study economic developments and decide on policies, with the Fed expected to hike rates for the seventh meeting in a row.
Gold resumes gains after marking heftiest loss in 3 months
Gold prices rose in European trade after a two-day hiatus, and after marking the heftiest daily loss in three months on active profit-taking while dollar strengthened following strong US services data.
However most analysts still expect the Fed to increase interest rates by 50 basis points only next week, which will underpin gold.
Gold Prices Today
Gold prices rose over 0.4% to $1,776 an ounce, after losing 1.6% yesterday, the second loss in a row, and the largest since September on profit-taking away from five-month highs at $1,810.
US Services
Recent US data showed US services PMI rose unexpectedly last month, showing the services sector remains vibrant.
US Services PMI rose to 56.5 from 54.4 in the previous reading, easily beating estimates of 53.5.
Such data raised chances of a 0.75% rate hike by the Federal Reserve from 18% to 22% next week.
Fed's Meeting
The Federal Reserve is meeting next week to study economic developments and decide on policies, with the Fed expected to hike rates for the seventh meeting in a row.
The SPDR
Gold holdings at the SPDR Gold Trust fell 2.03 tones on Friday, the third decline in a row to a total of 903.46 tones, the lowest since January 2020.
Euro backs off six-month high on profit-taking
Euro fell in European trade for another session against dollar off six-month highs on profit-taking.
Dollar was boosted after strong US services data for November, which boosted bets for a 0.75% rate hike next week.
EUR/USD fell 0.15% to 1.0475, with a session-high at 1.0518, after closing down 0.5% yesterday, the first loss in four days on profit-taking off six-month highs at 1.0595.
Euro rose 1.4% last week, the second weekly profit in a row against dollar as concerns about a widening policy gap between the US and Europe fade.
The Dollar
The dollar index rose 0.3% on Tuesday for the second session off six-month lows at 104.11 against a basket of major rivals.
Recent US data showed US services PMI rose unexpectedly last month, showing the services sector remains vibrant.
Such data raised chances of a 0.75% rate hike by the Federal Reserve from 18% to 22% next week.