Dollar Strengthens as Labor Market Data and Hormuz Tensions Rise

The US Dollar (USD) experienced gains against every major currency on Thursday, driven by positive labor market data and concerns over trade tensions in the Strait of Hormuz. The US Dollar Index (DXY) rose 0.26% to near the 100.00 level, while Oil prices surged 3% to $77 per barrel after reports that vessels linked to the United States, Israel, and other countries considered hostile by Tehran would be barred from the strait.

The Greenback was supported by Initial Jobless Claims, which came in at 199K, missing forecasts. Challenger Job Cuts also declined to 33.429K in July, its lowest print in two years. With Nonfarm Payrolls just a day away, investors were cautious, trimming risk and buying US Dollars.

The commodity picture also pointed towards higher US Dollar prices, with Gold declining 0.09% to $4,243 after briefly recovering the $4,300 level, and Silver falling 0.84% to $62. The EUR/USD pair fell around 0.27% to trade near the 1.1500 landmark, while USD/JPY rose 0.39% to near the 158.40 region.