Federal Reserve Chair Jerome Powell said in an interview with Marketplace radio station that US economy is doing well, pointing however to modestly higher wages last week, while productivity remains very low, with labor shortages persisting in many sectors. 

Powell said the Fed doesn't have a solution to the slow growth in wages, but noted that wages are indeed growing to some degree and the economy is presenting "very good" performance, with inflation rising to 2% recently in a way that allows for gradual rate hikes. 

As of 07:40 GMT, the dollar index, tracking the greenback against a basket of major rivals, rose 0.08% to 94.80 from the opening of 94.72, with an intraday low at 94.64, and the highest since July 3 at 94.94. 

Powell said Fed's policy makers are hearing concerns about the change in US trade policies, adding it's hard to predict the results of trade decisions, but expecting recent tax cuts to support economic activity in the US in the next two years. 

Silver futures rose nearly one percent in American trade off December 13 lows, while the dollar index inched up to July 13 highs, following earlier data from the US, the world's largest economy. 

As of 07:17 GMT, silver futures due on September 15 rose one percent to $15.97 an ounce from the opening of $15.81, moving off seven-month lows, while the dollar index inched up 0.11% to 94.82 from the opening of 94.72. 

US Inflation, Labor Data 

Earlier US data showed consumer prices rose 0.1% in June, slowing down from 0.2%, while core prices rose 0.2% as expected with no change from May. 

On a yearly basis, consumer prices rose 2.9% as expected, up from 2.8% in May, while core prices rose 2.3% as expected, accelerating from 2.2%. 

Unemployment claims in the week ending July 7 fell 18 thousand to 214 thousand, beating expectations of 225K, while continuing claims for the week ending June 30 fell 3 thousand to 1.739 million from 1.730 million.

Oil futures were mixed on Thursday, with Brent adding over one percent, while US crude lost ground, as the dollar index rebounded from June 14 lows for the fourth session, following earlier data from the US, the world's largest energy consumer. 

As of 06:35 GMT, US crude futures due on August 15 fell 0.14% to $70.28 a barrel from the opening of $70.38, marking June 26 lows, while Brent September futures rose 1.14% to $74.24 a barrel from the opening of $73.40. 

The dollar index, tracking the greenback against a basket of major rivals, rose 0.08% to 94.80 from the opening of 94.72, with an intraday low at 94.64, and the highest since July 3 at 94.94. 

US Inflation, Labor Data 

Earlier US data showed consumer prices rose 0.1% in June, slowing down from 0.2%, while core prices rose 0.2% as expected with no change from May. 

On a yearly basis, consumer prices rose 2.9% as expected, up from 2.8% in May, while core prices rose 2.3% as expected, accelerating from 2.2%. 

Unemployment claims in the week ending July 7 fell 18 thousand to 214 thousand, beating expectations of 225K, while continuing claims for the week ending June 30 fell 3 thousand to 1.739 million from 1.730 million. 

Sharp Drawdown 

The Energy Information Administration released its report on US crude stocks, showing an extensive drawdown of 12.6 million barrels in the week ending July 6, compared to a 1.2 million buildup in the previous reading, while analysts expected a 4.1M drop, with total stocks now down to 405.2 million barrels, 4% below the five-year average for this time of year. 

Gasoline stocks fell 0.7 million barrels, making them 6% above five-year averages, while distillate stocks, including heating fuel, rose 4.1 million barrels, still 12% below the five-year average. 

US-China Trade Dispute 

US President Donald Trump said today that America is in a bad trade war with China, but added the US will succeed by the end and will negotiate for a "fair trade deal" with China if possible. 

The US threatened a 10% tariff on $200 billion worth of Chinese imports, with China accusing the US of being a bully, but said no response is ready yet. 

China imposed tariffs ranging from 33.3% to 78.2% on US optical fiber products this week to counter flooding the market with these imports, up from 4.7% to 18.7% in previous rates. 

That comes after US imposed a 25% tariff on $34 billion worth of Chinese goods last Friday, with China responding with similar ones. 

IEA Forecasts Supply Shortages 

The International Energy Agency released its monthly report, forecasting OPEC's production to reach its peak soon, with Gulf countries raising output in order to cover the shortages from Venezuela and Iran. 

The IEA expects India and China to face challenges in obtaining oil due to supply cuts from Venezuela and Iran, while expecting overall demand on crude to rise by 1.4 million bpd in 2014. 

OPEC President Suhail Al Mazroui said oil price volatility are undesirable, after Brent tumbled over 6% yesterday, marking the worst performance since early February 2016, as markets price in escalating US-China trade dispute, and a return of Libyan production to stronger levels. 

Global Demand 

In its monthly report, OPEC expected a drop in global oil demand next year as consumption slows down as supplies increase, forecasting 32.18 million bpd of demand on OPEC's output, down 760 thousand bpd from this year, while expecting OPEC's production to increase past estimated demand in June to 32.33 million bpd. 

US Oil Rig Count 

Baker Hughes, a US oil services company, reported an increase of 5 in the American oil rig count for the first time in three weeks to 863 rigs, the highest since March 2015. 

US output rose over 29% from mid-2016 levels to 10.9 million bpd, a record high, passing Saudi Arabia's 10.7 million bpd and nearing Russia's 11.1 million bpd. 

Sterling tilted higher in American trade off July 4 lows against the dollar, following earlier data from the US, while the British government released the long-awaited White Paper detailing the Brexit approach and plans. 

As of 04:37 GMT, GBP/USD rose 0.13% to 1.3222 from the opening of 1.3205, with an intraday high at 1.3245, and a week low at 1.3181. 

The British government released the White Paper detailing its plans for the Brexit process, with the main points relating to setting up a free trade area so that goods processed in either the UK or the EU wouldn't have to go through another checkup. 

The government seeks "mobility arrangements" that are specific to some areas, instead of the free movements proposals with the EU, while ending the jurisdiction of the European Court of Justice over British matters. 

US Inflation, Labor Data 

Earlier US data showed consumer prices rose 0.1% in June, slowing down from 0.2%, while core prices rose 0.2% as expected with no change from May. 

On a yearly basis, consumer prices rose 2.9% as expected, up from 2.8% in May, while core prices rose 2.3% as expected, accelerating from 2.2%. 

Unemployment claims in the week ending July 7 fell 18 thousand to 214 thousand, beating expectations of 225K, while continuing claims for the week ending June 30 fell 3 thousand to 1.739 million from 1.730 million.