Mubasher: The US dollar hike against most all the majors on the back of better US data supported the possibility of interest rate raise by the Federal Reserve, according to NBK weekly money market report.
Expectations of a rate hike in December reached 85% as the US economy continues to release positive figures across all sectors, especially manufacturing.
Oil prices fell as US dollar rise renewed hope that OPEC might finally agree on production cuts. Brent crude oil futures declined 32 cents to $46.17 per barrel while West Texas futures decreased 47 cents to $44.95 a barrel.
Gold prices slid to $1,205, its lowest level in 6 months.
Regional manufacturing conditions continued to improve, according to results from the October Manufacturing Index. Indexes for general activity, new orders, and shipments were all positive this month.
“Firms expect continued growth for manufacturing over the next six months and are becoming more optimistic about employment expansion,” the report highlighted.
Unemployment claims fell to a 43-year-low this week as the fewest Americans since 1973 filed for unemployment benefits last week at 235,000 dropping by a 19,000 week to week.
The Eurozone’s flash GDP grew 0.3%. In addition, Euro area annual inflation was 0.5% in October 2016, up from 0.4% in September.
