Oil Higher U.S Dollar Down

Brighter stock markets and a slightly weaker dollar were enough to drag oil higher Thursday.
Traders overcame weak US jobs data and a downgrade to oil demand forecasts from the International Energy Agency, but not before they’d knocked crude down 2.5%.

On the metal markets, gold edged higher as the dollar gave back gains versus other major currencies, but copper fell below $2 a pound at one stage Thursday following the jobless claims news. (source: ft.com)

Sterling Vs Dollar

Sterling canceled losses versus the dollar to trade little changed thanks to stronger equity markets which fueled demand for higher risk currencies. A Bank of England report out Wednesday suggesting a recovery will take longer than previously thought, had continued to dampen demand for the pound. The yen, which has done well out of safe-haven flows the past few days, gave back some of its gains.

A US jobs report revealing initial weekly jobless claims hit their highest since April and in-line producer prices data had failed to do much to the US currency. (source: sharecast and bloomberg.com)

FTSE on a roll

On Thursday, Britain's leading share index ended with gains in banks and miners offsetting weakness in oil producers, hurt by weaker crude prices. Banks were the top sectoral gainer after falling sharply in the previous session.

US Stocks on High

Thursday US stocks rose as investors returned to financial and technology shares on bets the recent rally could have more room to grow after a brief pullback. Volume, however, was light, a possible indication of a lack of broad conviction. Analysts said the surge in U.S. markets over the past two months has made investors who missed the rally anxious to get back into stocks.

On the other hand, Defensive stocks such as consumer staples and healthcare also gave a lift, underscoring some of the lingering worry about the economy following a report that showed a jump in weekly jobless claims. (source: reuters.coma & ft.com)

Dollar Ups and Downs

The dollar rose yesterday with falling markets and investors flocking to its safe haven appeal. The Sterling also fell against the dollar after Bank of England revealed that an economic recovery is far ahead. The yen like the dollar took advantage of its safe haven appeal.

Think and Decide Things

Yesterday I was all set to invest on U.S stocks. I wanted to sell the shares which I'm holding, but then I realized that the market was in doldrums and that instead of selling the shares, I bought some shares. With Government stress tests on big banks out of the way, and after a steep rise from March lows, investors sold some financial's across U.S and took some of their recent gains.

US Dollar Fears on Friday

Last week of the day, the U.S dollar was quite weak. Demand for the dollar was down when the better than expected April Pay roll figures, with interest turned out to be a riskier currencies such as the Euro.

On the other hand, demand for the Euro received a shot in the arm on hopes that the ECB would announce plans to boost the Euro-Zone economy.

Sterling rose against the dollar but fell against the Euro as investors mulled the bank of England's decision to increase its asset purchase programme by 50bn pounds and spooked the market with comments that it was uncertain about the timing of an economic recovery.

The greenback was also down against the yen, off 0.3% to 98.91 yen. (source: sharecast, reuters, gnutrade Market Talk)