The dollar bounced off three-month lows against European currencies on Thursday after minutes from the Federal Reserve’s last policy meeting revealed there was more talk of tapering its bond purchases than investors had expected.
Oil prices fell on Thursday after a slump in the previous session, as rising U.S. stockpiles added to concerns about a hit to demand from surging coronavirus infections in Asia and possible U.S. rate hikes.
The S&P 500 fell Wednesday as signs the Federal Reserve is starting to think about broaching the bond tapering topic at upcoming meetings offset relative rebound in tech amid dip buying in chip stocks.
Stock markets struggled for traction on Thursday after a jittery session on Wall Street where cryptocurrencies crashed and a hint of tapering talk from the U.S. Federal Reserve drove selling in the bond market and lifted the safe-haven dollar.
The gold market is seeing new momentum with prices back above $1,850 and the 200-day moving average. According to some analysts, the yellow metal could be receiving support as volatility hammers cryptocurrencies.
The U.S. dollar steadied but remained near a six-year low against its Canadian counterpart and nursed losses against European currencies as expectations that U.S. interest rates will remain low undermined the greenback.