The dollar maintained firm tone on Thursday, holding near nine-month highs against the other major currencies, following the release of mixed U.S. economic data, with expectations for US rate hike later this year continued to underpin demand for greenback

The US dollar index was up 0.26% from today’s opening and peaked at 98.75 on bounce from day’s low at 98.48, holding near fresh nine-month high at 99.09.
US weekly jobless claims came at 258K, below expectations and previous week’s upward-revised 261K figure. On the other side, Durable Goods Orders disappointed in September on -0.1% release vs 0.1% forecast and upward-revised numbers from August.

However, durables miss is not expected to impact bets on rate hike, despite core durable goods orders fell well below forecasted levels on continued contraction for 21 straight month.
On the other side, sterling fell back to 1.2200 support against the dollar, failing to sustain gains to one week high after Q3 GDP data showed that the economy grew at a faster-than-expected pace in Q3.

Better-than-expected GDP numbers also suggested that anticipated impact of Brexit vote was not that strong and also reduced chances of an interest rate cut next week.
Cable returned to strong 1.2200 support and softened near-term technicals, with growing risk of break below 1.2200 handle that may trigger fresh weakness of British pound.

The dollar remained firm against Japanese yen and is on renewed attempt above key near-term barriers, firm break of which would signal bullish continuation after the pair spent nearly three weeks in directionless mode. The dollar is attacking 104.75/76 barriers for extension towards next targets at 105.00/60.
Australian dollar is also under strong pressure against its US counterpart, extending steep descend from Wednesday’s high at 0.7708 and threatening of attempts below strong supports at 0.7585/90 zone.

Spot Gold bounced from day’s low at $1265 on mixed US data but was so far unable to sustain gains above initial barrier at $1271, keeping near-term risk shifted towards recent range floor at $1260.

US Crude oil price made limited progress on Thursday, bouncing to $49.75, keeping near-term risk at strong support at $49.14 which was cracked on Wednesday. The oil remains under pressure on renewed concerns about completion of the plan for production cut that was recently agreed between OPEC and non-OPEC members.

European stocks were slightly higher on Thursday, on recovery of Wednesday’s strong fall, but are so far unable to sustain gains and signal stronger recovery.

German DAX was up 0.54% until now, after quick reversal from day’s spike high at 10769. British FTSE100 gained 0.48% from the session start until Wall St opening, while French CAC40 made gains of 0.11% until now, after today’s strong gains stalled at 4555 and subsequent reversal brought the price close to opening levels.

Wall Street opened higher on Thursday after a flurry of strong quarterly earnings in the healthcare sector and a multi-billion dollar technology deal boosted investor sentiment that was soured by Apple’s miss yesterday.
Dow Jones was up 0.27%; S&P500 up 0.36% and Nasdaq was up 0.44% on Wall St opening., Market Analysis