Dollar Index Heads Towards Its Worst Monthly Performance Since a Year

Market News Summary

European market indices closed higher on Thursday, wrapping up an active month on a positive note as investors assessed inflation data in the Eurozone, indicating easing pressure from rising prices.

The Stoxx 600 index closed with a 0.5% gain, reaching its highest level in 10 weeks. With this increase, the monthly gains for the index in November have reached 5.87%, according to LSEG data. This marks its best performance since January and a sharp rebound from three consecutive monthly losses.

Dollar Index (USDX)

The dollar index declined, heading towards its worst month since a year, while the yields on 10-year Treasury bonds reached their lowest level in two and a half months.

Traders evaluated data that showed a slight increase in U.S. consumer spending in October, while the annual rise in inflation was the lowest since early 2021.

Pivot Point: 103.20

Spot Gold (XAUUSD)

Gold prices fell at the end of Thursday’s trading but still recorded gains for the second consecutive month as expectations increased that the Federal Reserve might cut interest rates soon.

Gold in spot transactions dropped by 0.4% to $2035.79 per ounce after reaching its highest level in almost seven months in the previous session. Gold futures rose by about 2.7% in November.

Pivot Point: 2037

Dow Jones Index (DJ30ft – US30)

The US indices closed mixed on Thursday’s session, but they achieved strong monthly gains supported by rising hopes of easing the Federal Reserve’s policy after a slowdown in inflation rates. The preferred inflation gauge for the Federal Reserve slowed down on a yearly basis in October, raising the likelihood of the central bank ending its tight monetary policy. Data released on Thursday showed a slowdown in the Personal Consumption Expenditures (PCE) index to 3% in October on a yearly basis, after reaching 3.4% in the September reading.

The Dow Jones index jumped by about 1.5%, equivalent to 520 points, in Thursday’s session to close at its highest levels since January 2022, supported by strong gains in Salesforce shares. Throughout the month, the Dow Jones rose by about 9% in November, marking its highest monthly gains since October 2022.

Pivot Point: 35855

US Crude Oil (USOUSD)

Crude oil prices dropped more than 2% yesterday, Thursday, after OPEC+ producers agreed to voluntary oil production cuts in the first quarter of the next year, which fell below market expectations.

Brent crude futures declined by 27 cents, or 0.3%, to $82.83 per barrel at the settlement, marking a monthly loss of 5.2%. Meanwhile, West Texas Intermediate (WTI) crude futures fell by $1.90, or 2.4%, to $75.96 per barrel, registering a 6.2% decrease for the month.

Pivot Point: 76.75

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