The euro/U.S. dollar currency pair gained 0.777% during the week. The single currency is trading at 1.0987 after a period that was high on political risk with the French presidential elections entering their final stretch. The televised debate between the two candidates was an entertaining affair but failed to change the odds by much.
Despite the falls in buck-denominated gold, silver and copper prices, the U.S. dollar hasn't exactly been strong with the British pound/U.S. dollar (GBP/USD) currency pair and EUR/USD remaining bid throughout the week. But the dollar has performed much better elsewhere.
It hasn’t been a good day for commodities with gold, silver, copper and oil all falling sharply. Copper has been hit the hardest, followed by silver. The metals have been weighed down in part because of the stronger U.S. dollar, which has risen to its highest level since March 21 against the Japanese yen. The U.S. currency last week hit new highs on the year versus the major commodity currencies: the Canadian, Australian and New Zealand dollars.
Strong dollar or weak dollar; take your pick. The dollar took a break last week after President Donald Trump said that the dollar was too strong. U S. Treasury Secretary Steven Mnuchin told the Financial Times that a strong dollar was a positive in the long term. Overall, this did not help the mood of the commodity sector that is acting like it had too many Easter eggs. Both precious metals and industrial metals are taking a hit and that is not helping oil as the market sells off in a light volume frenzy.