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Barchart
Barchart
Rich Asplund

Dollar Slips and Gold Climbs to a Record High as ECB Cuts Interest Rates

The dollar index (DXY00) today fell back from a 1-week high and is down by -0.10%. The dollar slipped today after US weekly jobless claims unexpectedly increased, which signaled a weaker labor market that is dovish for Fed policy.  Also, strength in the euro is weighing on the dollar as the euro moved higher after the ECB refrained from pre-committing to future interest rate cuts after cutting rates today.

On the positive side for the dollar, today’s as-expected US Aug PPI report dampened speculation that the Fed will cut interest rates by 50 bp at next week’s FOMC meeting.

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