The dollar neared a nine-day high on Thursday after the European Central Bank showed continued commitment to its monetary easing policy for the near term. The dollar gained 0.3 percent on Thursday morning to trade at 111.385 yen. The greenback also gained against the euro, trading at $1.0745. Analysts worldwide had largely expected the ECB to taper its monetary easing policy, and the failure to do so sent the euro down nearly 0.5 percent overnight as traders scrambled to reconfigure their outlooks and trades.
The pound traded relatively flat on Thursday, inching up only 0.1 percent to $1.2450 despite expectations that the trigger of Article 50 and the effective start of Brexit would send markets lower. Traders are concerned that despite the relative stability of the sterling’s trade thus far, the currency could fall to around $1.10 by the end of the year.
Oil Rally Loses Momentum
The two-day oil rally which had sent prices higher came to an end on Thursday as reports of record U.S. crude inventories overpowered reports about Libyan supply problems that had sparked the original reversal. Brent crude futures were trading at $52.31 per barrel on Thursday morning, down 11 cents per barrel, and U.S. WTI crude futures were down 4 cents per barrel to $49.47 per barrel. U.S. inventories were recorded as rising 867,000 barrels in the week ending March 24.
Compliance with OPEC’s production cuts is expected to be recorded at around 95 percent when the March reports come in, which members are hoping will help contain the price devaluation. However, the rise of U.S. crude production and the lack of participation by non-OPEC countries upon which the deal was relying may compromise the success of the endeavor.