Mid-Day Report: Dollar Extends Rebound as Commodities Selloff Resumes
Dollar’s rebound extends further today as another round of selloff in commodities start. The CRB commodity index has already breached last week’s spike low with silver breaking last week’s low of 33.03 to as low as 32.30 so far. Crude oil and gold are both set to drop further to resume last week’s steep decline. Dollar index rose to as high as 75.65 so far as EUR/USD breaks key near term support at 1.4157. Equities are also soft with major European indices down more than 1% while US futures point to lower open.
Economic data from UK, Eurozone and Australia all put some pressure on respective currency. UK industrial production rose less than expected by 0.3% mom, 0.7% yoy in March while manufacturing production rose 0.2% mom, 2.7% yoy . Both missed expectations. Eurozone industrial production unexpectedly fell -0.2% mom in March, up 5.3% yoy versus consensus of 0.3% mom, 6.3% yoy.