Optimism Drives Dollar Higher
In today’s economic news,
revised Q4 Productivity declined more than expected
(report).
The report helped Treasuries stage a recovery after 10-year yields hit their
highest level since June 02.
The US Dollar Index rose 0.98% as the Dollar rallied strongly against all
major currencies. The Dollar gained more than 1% versus the Euro and Swiss
Franc, and nothced up gains close to 1% versus the AUD, CAD and GBP.
In the energies, Crude Oil, Unleaded Gas and Heating Oil closed lower, although
Unleaded Gas closed well above session lows. Natural Gas bucked the trend and
closed higher, after hitting a 9-month low yesterday.
All the softs except for Orange Juice closed lower. Sugar led the decline,
falling more than 3% after Dow Jones Newswires reported the Chinese government
plans to sell 400,000 tons from its reserves. Coffee (-2.11%) was also weak.
The grains were weak, with only Wheat managing to record modest gains. All the
meats closed lower. Lean Hogs experienced the heaviest selling, losing more than
2%.
Productivity Revised To Down 0.5% For Q4; Unit Labor Costs Changed To Up 3.3% (report).
Ashton Dorkins
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