U.S. Dollar Is Holding Onto Friday’s Gains. The U.S. dollar steadied on Tuesday, but clung to most of its gains following Friday’s robust payrolls report, as investors await inflation data this week that may signal a turnaround in the currency’s weakness this year. The dollar index, which tracks the greenback against six major rival currencies, was down 0.1 percent to 93.449. U.S. PPI for July due on Thursday and CPI figures on Friday should confirm whether labor market strength is spilling over into inflation.
Euro Stronger vs Greenback. Meanwhile, the euro shrugged off an unexpected fall in German industrial production in June and was up 0.19 percent against the dollar.
Gold Finding A Bottom. Gold looks directionless moving in tight range at $1,260 level. Eventually it should resume the recent uptrend. An initial move to $1,300 is certainly in reach. The dollar is gaining strength; however, it appears that gold has already priced in a stronger dollar. Expectations of a Fed move at some point towards year-end seem to have resurfaced after the solid July’s payrolls report, putting the demand for the safe haven metal under extra downside pressure.
