- Oil, gold rally amid broad US dollar weakness.
- US dollar index falls 0.55% to 97.39 amid weak economic data and a stronger euro.
- WTI, Brent reach highest level of the year.
The US dollar declined on Thursday after wavering for much of the week, as crude oil and precious metals rallied across the board.
The dollar index, which had strengthened earlier in the day, declined 0.55 percent to 97.39.
The EURUSD rallied ahead of a crucial Eurogroup meeting on Friday, as investors digested upbeat German consumer confidence data, which outweighed unexpected weakness in Eurozone PMI. The EURUSD soared 0.8 percent to 1.0807, its highest since Monday.
Weak US Data
Disappointing economic data underpinned the dollar’s latest slump. New home sales declined 11.4 percent in March to a seasonally adjusted annual rate of 481,000, the Commerce Department reported on Thursday. That was well below the median estimate of economists, which called for 513,000.
Separately, US manufacturing PMI declined more than forecast in April, preliminary data from Markit Group revealed on Thursday. US manufacturing PMI fell to 54.2 in April from 55.7 in March on weaker production levels and declining exports.
Crude Oil Rises
Oil prices continued to trade in lockstep with the US dollar, as the global and US benchmarks resumed their upward climb.
West Texas Intermediate (WTI) for June delivery rose to its highest level of the year, climbing 3.44 percent or $1.93 to $58.09 a barrel.
Global benchmark Brent crude was trading at $64.99 as of 11:40 ET. That represents a gain of 3.6 percent or $2.26.
A fresh wave of violence in Yemen kept oil prices elevated on Thursday, as Saudi Arabia bombed Houthi rebels just two days after announcing it was ending the aerial attacks. Yemen is a key delivery hub for global oil, as the country’s southern coast controls access to the Red Sea and Suez Canal.
Gold Above $1,200
Spot gold rose 0.5 percent to trade above $1,200 an ounce. By 12:16 ET it had traded at $1,191.82 an ounce, up 0.4 percent or $4.69.
Gold futures were up 0.4 percent or $4.70 to $1,191.60 an ounce by 11:50 ET.