The U.S. dollar weakened Wednesday to its lowest level in a month as rising oil prices supported currencies of commodity exporters and deteriorating expectations for a summer interest-rate hike drained some of the greenback’s vitality. This boosted the currencies of major oil exporters. The Canadian dollar CAD/USD, +0.0788% rose to 78.74 U.S. cents late Wednesday after touching its strongest level in more than a month. It traded at 78.39 cents late Tuesday in New York. On the U.S. side, analysts said the main driver of the dollar’s weakness was the May jobs report, which was released on Friday. The data showed the pace of jobs growth in the U.S. slowed to its weakest level in more than six years in May, which followed a reading in April that also fell short of expectations.
No matter what you throw at this market, it keeps wanting to go higher. .
The S&P 500 rose 0.3% to 2,119.12 at New York Exchange, the highest since July 21, 2015 and 0.6 percent from a record. The Dow Jones Industrial Average added 66.77 points, or 0.4%, to 18,005.05, a six-week high. The Nasdaq Composite Index increased 0.3 percent. About 6.5 billion shares traded hands on U.S. exchanges, 8% below the three-month average. Federal Reserve Chair Janet Yellen’s remarks this week that the U.S. economy is making progress and indications that policy makers won’t prematurely raise interest rates have helped support stocks. Traders have cut back their bets for a Fed rate increase, now pricing in no chance of a boost in June, with the probability for July down to 18% from 53 percent a week ago. The rally has been reinvigorated after losing momentum following the S&P 500’s four-month high on April 20. The index has climbed in 8 of 11 sessions, racking up nearly all of this year’s 3.7% gain in the last two weeks. About 70% of stocks on the New York Stock Exchange closed above their average prices during the past 200 days.
There’s definitely reason for the market to take a breather in conjunction with the notion that we’re near all-time highs..