The US dollar holds steady after a two-day slide
Wall Street equities were higher overnight as investors shifted their focus from the Fed to the upcoming monthly jobs report. Markets cheered the news that Fed Chair Powell played down the likelihood of an interest-rate hike despite stubbornly high inflation. During the session, the S&P 500 rose 0.91%, the Dow Jones Industrial Average gained 0.85%, and the tech-heavy Nasdaq Composite led the gains, up 1.51%. in indnvidual stocks, Apple jumped as much as 6% after hours as the company reported better than expected earnings per share and revenue for the prior quarter.
Asian shares were mostly higher on Friday, while several major markets including Tokyo and Shanghai were closed for holidays. The Nikkei 225 shed 0.1% while the yen strengthened slightly against the US dollar amid signs of another central bank intervention. Elsewhere in the region, Hong Kong’s Hang Seng jumped 1.5% due to a rally in tech stocks. Australia’s S&P/ASX 200 gained 0.55% and the Kospi in Seoul edged erased early gains to finish 0.25% lower.
Meanwhile, the US dollar holds steady on Friday after a two-day slide triggered by the Fed as the central bank’s tone was seen by traders as not as hawkish as expected. As such, the USD index briefly dipped below the 105.20 zone before bouncing marginally. Before the Fed meeting, the greenback briefly rallied to the 106.50 zone that capped bullish attempts and triggered a major retreat. Now, the dollar needs to hold above the 105.20 region in order to stay afloat in the near term.
Elsewhere, oil prices saw solid gains earlier in the week to see mid-March lows around $83.80 during the previous session. Brent crude has bounced above the $84 figure since then, but refrains from a more decisive bounce so far. Of note, the oil price is on track for its biggest weekly losses in three months, shedding over 6% so far this week. Oil was pressured by hopes for a deal to bring about a ceasefire in Gaza. A ceasefire, if agreed, would cut risks to oil supplies from the region.
