The dollar held steady during Thursday’s Asian session after strong U.S. jobs data all but confirmed the likelihood of a Fed interest rate hike next week. Oil prices plummeted 5 percent on Wednesday to their lowest prices of 2017 as reports confirmed that U.S. crude inventories hit record highs. U.S. production now stands at 9.1 million barrels per day. The market couldn’t rebound from these losses on Thursday morning, though it did achieve small gains, with Brent crude rising 43 cents to $53.54 per barrel and U.S. WTI crude hitting $50.588 per barrel, a 30 cent recovery. $50 is an important psychological level for WTI as well as a key indicator for the markets as a whole. The asset had plunged to as low as $50.28 per barrel.
Oil prices may have also been sensitive because OPEC officials did not commit to extending their production cuts at its next meeting in May. The fall in oil prices kept Wall Street at bay, with energy stocks falling 2.5 percent. The Dow lost 0.33 percent on Wednesday and the S&P eased 0.23 percent. The Dow gained 0.06 percent.
The dollar index gained 0.1 percent on Thursday morning to trade at 102.210 .DXY, close to its peaks from earlier this month. The euro traded at $1.0530, down from a top hit earlier this week. Spot gold traded at $1,204.90 on Thursday, fueled mostly by fears of the impending rate hike.