United States Dollar slipped after the sequence of data showed that US economy lost it’s momentum. Meanwhile, Yen was rebound because traders continued to bet about the Bank of Japan. 

They bet that BOJ will change it’s direction from a very loose monetary policy. The released US data showed that retail sales showed the most decline within a year. 

That was happened in December and manucaturer output experienced the biggest decline in almost two year. This thing pushed a sharp decline for bond yields. 

The analysts said that bond yield decline made the dollar denominated obligation was less attractive. That also become a factor which weightednon Greenback. 

Euro was 0.2% Higher

Lastly, Euro was 0.2 percent higher than US dollar at $1.082. It reached the highest level within nine months at $1.089 before it cut the raise. Christine Lagarde as the President of European central Bank shared her thought. 

She said on Thursday that inflation was too high and ECB will keep raising the rate. Elsewhere, the furure oil experienced a slight increase on Thursday.

That recovered the decline from the beginning of a session because the China demand increase prediction and further restriction on Russia’s export showed that the market supply will still tight. 

Brent future oil was up by 36 cent or 0.4% to become $85.34 per barrel. Meanwhile, The West Texas Intermediate or WTI in America was 21 cent higher or increased by 0.3% to become $79.69 Per barrel.

Energy Market will be Tighter in 2023

The Chief of IEA or International Energy Association, Fatih Birol, said on Thursday that in 2023 the energy market can be tighter. He hopes that price will be not raising too much. 

The aim is for reducing any pressures on the developed countries which import the energy. However, the global economy obstacle and other factors can weight on oil demands. 

Those factors are like the aggressive interest rate increase and stronger US dollar. The other aspects which are also bearish for oil was a surprising step on the United States crude oil stock. 

Besides that, the increasing recession concern with retail sales data and disappointing United States output were also bearish. Market participants decided to wait the updates before taking an action. 

US Crude Oil Stocks Increase

Lately, the American Petroleum Institute released their data about crude oil stocks in that country. The data showed that it is increasing for about 7.6 million barrel within a week which was ended in 13th of January. 

The average prediction from a voting made by Reuters to nine analysts are 600,000 barrel decline. Elsewhere, gold was taking the different direction and sold at a higher position. 

It was because the US dollar condition which was weakening from it’s high daily level and the interest Rate increase speed expectation made by Federal Reserve was slower. 

Those factors supported the price above the limit level of $1,900. Before, the gold commodity declined at the last two sessions based on the data in the foreign exchange market. 

Spot of Gold Rises by 0.4 Percent 

After a decline which was happened before (last 2 sessions), the spot of gold is increasing by 0.4 percent right now. That commodity became $1,916.45 per ounce. 

Before it has been reaching the lowest level of $1,896.32. Although it rose on Wednesday, the price of gold has fallen from the highest level since April 2022, which was reached on Monday

Market participants are increasingly expecting the Fed to reduce the rate of rate hikes to 25 basis points at its next meeting, having slowed its pace to 50 bps in December.

That was after four consecutive 75 bps hikes. Since gold does not generate interest, it tends to become more attractive in a low-interest rate environment in the market.