The dollar reversed from 2 ½ year lows as Asian stocks headed higher on Wednesday morning and European markets looked for a positive open as well. The dollar index was up 0.15 percent to 92.47 .DXY as of 7:30 a.m. GMT. The euro was lower against the dollar, trading at $1.1952. The dollar was also up against the yen, 0.23 percent to 109.99. The strengthening dollar came on the heels of reports out of North Korea that the missile launch earlier this week which originally spooked markets (and global leaders) may not have been successful. On Wednesday, the United Nations Security Council condemned North Korea’s firing of the ballistic missile over Japan and stipulated that Pyongyang must abandon its nuclear weapons programs and cease to launch any more missiles. The Security Council also called for U.N. sanctions against Pyongyang, while simultaneously stating a commitment to a “peaceful, diplomatic and political solution” to the current conflict. North Korea has been sanctioned by the U.N. for its nuclear program since 2006.
Traders are now looking towards non-farm payroll reports due out Friday which are expected to show positive steps for the U.S. economy and may boost the dollar further.
Oil Prices Struggle
Oil prices continued to flounder on Wednesday morning due to Hurricane Harvey’s damaging impact on Texan oil refineries. U.S. WTI crude futures were down 0.17 percent in early trade, to $46.36 per barrel. Brent crude futures were down 0.15 percent to $51.92 per barrel. Goldman Sachs estimated that approximately 1.4 million barrels per day of production was disrupted due to Hurricane Harvey, about 15 percent of the total U.S. output. Restarting the refineries can take up to several weeks.