28th August 2015
The US dollar retreated slightly on Friday (August 28th) after a broad rally the previous day spurred the currency to its strongest level in a week and sent oil prices soaring.
Traders locked in gains and took profits, forcing the greenback lower following Thursday’s bounce off the back of stronger US economic data.
Figures showed the US economy grew by a better-than-expected 3.7 per cent in the second quarter, sending shares, oil and the dollar higher. But the upbeat mood was held in check as stocks in China ended a roller coaster week down eight per cent.
USD/JPY shed 0.2 per cent on Friday after recovering much of the ground it lost this week. The dollar had gained more than four per cent since Monday’s trough, a seven-month low.
EUR/USD inched up 0.3 per cent, but was still nearly four cents off its week high as the dollar settled at a level it reached before Monday’s selloff.
GBP/USD was steady below the 1.54 handle, close to its lowest in a month and a half, as upbeat UK growth figures failed to lift the pound.
Oil prices were steady on Friday also, holding onto most of the gains in the previous session.
US light crude and Brent crude both surged ten per cent in what was the biggest one-day rally for oil since 2009.
West Texas Intermediate held firm at $42.50, while North Sea Brent edged a little lower to $47.41.
Stocks in Europe were steady, with the FTSE barely changed after rising by 3.6 per cent in the previous session and the DAX shedding a modest 0.5 per cent.
The Shanghai Composite Index closed up 4.8 per cent, but was down almost eight per cent for the week. Hong Kong’s Hang Seng ended the week 3.6 per cent lower.
Stock futures on Wall Street pointed to a lower open on Friday. On Thursday, the Dow Jones index closed up 366.72 points, or 2.3 per cent, at 16,285.51.
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.