The dollar index which measures the greenback against a basket of major currencies settled slightly higher at 96.61 supported by the rising Treasury yields. The US 10-year yields rose to a one-week high of 2.70%. The Federal Reserve will provide a report summary of discussions of the conduct of monetary policy and economic developments and prospects for the future. The USDJPY has been trading in a tight range 110.55-95 awaiting fresh drivers.
The EURUSD is still caught in a consolidation zone between $1.1320-1.1370 despite the release of several economic indicators. The February Composite and Services PMI were better than expected, while the Manufacturing PMI was the weakest since 2013. Market participants await the release of the German IFO Business Climate and January inflation figures.
Metals prices tumbled as the dollar gained strength as the yields recovered. The price of a gold ounce dropped to a low of $1321, the silver ounce declined to a low of $15.77, and Palladium hovered near $1480.
Oil prices finished slightly lower on soft manufacturing data from the Eurozone and the United States. Moreover, the Energy Information Administration reported that the weekly US crude oil inventories rose 3.672 million barrels last week. The West Texas Intermediate crude futures dropped to a low of $56.63, and Brent futures declined to a low of $66.68.
Major Economic Events
|9:00||EU||German Ifo Business Climate Index||99.0||99.1|
|10:00||EU||CPI (YoY) (Jan)||1.4%||1.4%|
|13:30||CA||Core Retail Sales (MoM) (Dec)||-0.5%||-0.6%|
|15:30||EU||ECB President Draghi Speaks|
|16:00||US||Fed Monetary Policy Report|
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