The Fed concluded its Board meeting Wednesday afternoon (April 28) by announcing that it was leaving interest rates unchanged with the key funds rate near zero per cent. The announcement is not surprising given most of the Central Bank leaders’ commitment to leave rates low for an ‘extended period’, but it is interesting to see following a month long crusade by a few economists and leaders to advocate for raising rates to stave off inflation.

Thursday’s (April 22) reports that showed improvements in the number of initial jobless claims and the number of existing home sales for March, along with a string of positive earnings reports this week have helped propel fuel prices over $84.

Two very positive reports on the economy Thursday (April 22) morning have helped strengthen the dollar against major currencies and commodities. Home sales were relatively strongly during the month of March and last week’s new jobless claims fell by 24,000 from the week before, in line with analyst estimates.

The dollar made gains on Thursday (April 15) against most major currencies and also put a wrap on driving oil prices and gold prices. The dollar’s strength is due partly to the rapid passing of an $18 billion extension of unemployment benefits for hundreds of thousands of people that have been struggling after their state-paid unemployment benefits ran out.

Oil prices climbed by nearly two per cent Wednesday (April 9) to settle at $85.84. Catalysts included a weaker dollar following a disappointing look at jobs and a surprising decline in oil supplies.

The dollar got a boost from comments by Federal Reserve Bank of Kansas City President Thomas Hoenig. A member of the Federal Reserve board, Hoenig says he is in favor of an increase in the Fed funds rate from its current position near zero per cent to closer to one per cent.