GMI Markets Daily Market Report - Friday, Oct 22, 2021: US Dollar Rises Thanks to Solid US Economic Data, Rise in US Bond Yields


The US dollar climbed versus other major currencies on Thursday, overcoming previous losses, supported by strong US economic data and rising US bond yields. According to data released yesterday, the number of Americans submitting new unemployment claims fell to a 19-month low last week. In other news, home sales in the United States hit an eight-month high in September. After dipping to 93.49 earlier in the day, the dollar index rose 0.17 percent to 93.76. Meanwhile, Fed Governor Christopher Waller suggested on Thursday that the US central bank's balance sheet should be reduced by $8 trillion over the next few years. The dollar's advances were aided by a rise in the 10-year US bond yield, which reached 1.683 percent, the highest level since May 13.

Bostic: Fed May Raise Rates In Q3 2022
According to Atlanta Federal Reserve Bank President Raphael Bostic, supply chain disruptions and labor market constraints, along with robust consumer demand, could keep inflation high until 2022, and the US central bank may need to hike interest rates in the second half of the year. When asked when he expects a rate hike in 2022, Bostic stated on CNBC, "I'm guessing late third, maybe early fourth quarter."

Gold Weakens As US Bond Yield Rises
Increasing US bond yields weighed on gold prices on Thursday, countering concerns about rising inflation and China's struggling housing market. Gold slipped 0.1 percent to $1,780.61 an ounce on the spot market. Ten-year Treasury rates in the United States have risen to five-month highs. Despite concerns about Evergrande defaulting and inflation, gold did not rise.

Oil Corrects Due to Weather Forecast in the US, China's Coal Prices Fall
Oil prices dipped on Thursday, as projections for a warm winter in the United States slowed a rise that had sent prices above $86 a barrel earlier in the day due to restricted supplies and the global energy crisis. According to a report released Thursday morning by the National Oceanic and Atmospheric Administration, winter weather in parts of the United States will be warmer than typical. Brent sank $1.21 to $84.61 a barrel, while US WTI fell 92 cents to $82.50 a barrel. Falling coal and natural gas prices have also put pressure on oil prices. Coal prices in China have dropped 11% this week, following Beijing's announcement that it would intervene to cool the market. OPEC+ is likely to keep to its plans for moderate production increases, but demand is projected to return to pre-pandemic levels, according to some analysts, thus the surge in oil is likely to continue.

Wall Street Varies, Dow Down
The S&P 500 and Nasdaq indexes rose on Thursday, but the Dow Jones Index fell. The S&P 500 index hit a new high and advanced for the sixth consecutive session, while the Nasdaq gained ground mainly to increases in Tesla Inc and Microsoft Corp. The Dow Jones industrial average fell 0.02 percent to 35,603.08, while the S&P 500 rose 0.30 percent to 4,549.78 and the Nasdaq Composite rose 0.62 percent to 15,215.70.


  • Screenshot_2023-04-13-15-54-42-99_40deb401b9ffe8e1df2f1cc5ba480b12.jpg
    286.4 KB · Views: 1
  • Screenshot_2023-04-13-15-54-36-12_40deb401b9ffe8e1df2f1cc5ba480b12.jpg
    309.3 KB · Views: 1