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Dollar Falls on Soft Inflation Data

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USD

The dollar index which measures the greenback against a basket of major currencies traded at a two-week low of 94.99. The inflation figures slowed down for the second consecutive month. The consumer price index rose by 0.1% versus an expectation of 0.2%. On the other hand, the U.S. Treasury yields retreated where the 10-year yields fell to a ten-day low of 3.12%.

Equities

Major U.S. indices extended losses. The Dow Jones Industrial Average futures traded at a three-month low of 24893, the S&P500 futures touched a low of 2712, and the Nasdaq futures traded at 6907, the lowest since late May. However, the low prices attracted buyers and the equity futures bounced-off the lows and traded higher during the Asian session.

Metals

Gold prices spiked to a ten-week high of $1226 as investors rushed to the safe haven asset due to higher market uncertainty. Also, the silver ounce gained on dollar weakness and traded at a high of $14.60.

Oil

Oil prices settled lower for the second consecutive day as U.S. crude oil inventories surged. The Energy Information Administration reported that the weekly U.S. crude oil inventories rose by 5.987 million barrels last week. The West Texas Intermediate crude futures closed at a three-week low of $70.97, and the Brent futures finished at $80.30. The U.S. energy services firm Baker Hughes will report the weekly U.S. oil rig count later today.

Major Economic Events

GMT Country Event Expectation Previous
9:00 EU Industrial Production (MoM) (Aug) 0.4% -0.8%
14:00 US Michigan Consumer Sentiment (Oct) 100.4 100.1
14:00 US Michigan Consumer Expectations (Oct) 90 90.5
17:00 US U.S. Baker Hughes Oil Rig Count   861

 

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