News

US Dollar Index Holds near a one-month low ahead of Key Economic Data

USD

The dollar index which measures the greenback against a basket of major currencies fell 0.6% to settle at 96.39, the lowest close in a month. Investors are anticipating that the drop in the US stock market and the signs of a global economic slowdown will not allow the Fed to continue tightening its monetary policy. Market participants await the final reading of the third quarter GDP later today. The USDJPY traded at a three-month low of 110.82, and the EURUSD rose to a six-week high of $1.1485.

Equities

Major US indices finished sharply lower for the fifth consecutive day amid mounting concerns over global growth. The Dow Jones Industrial Average futures fell to 22639, the lowest since October 2017. The S&P futures tumbled to 2445, the lowest since August 2017. Nasdaq futures traded near the February lows at 6180, the index lost more than 20% since October and entered a bear market.

Metals

Gold prices spiked to a six-month high on safe-haven demand amid a global stock market sell-off. The gold ounce traded at a high of $1266, up 1.9%, the biggest daily gain since October. Meanwhile, the silver ounce added 1.1% to $14.74, and Palladium finished almost flat at $1262.

Oil

Oil prices plunged along with the global stock market, but the expectations that OPEC+ production cuts will be deeper than expected shunned further declines. OPEC secretary general Mohammad Barkindo said that OPEC is planning to publish the cut quota details, and added that the effective reduction was 3.02% versus the initially discussed 2.5%. The West Texas Intermediate crude futures lost 2.5% to $46.00, and the Brent futures dropped 3.1% to $54.71, the lowest close since September 2017. The US energy services firm Baker Hughes will report the US weekly oil rig count.

Major Economic Events

GMT Country Event Expectation Previous
9:30 UK GDP (YoY) (Q3) 1.5% 1.5%
9:30 UK GDP (QoQ) (Q3) 0.6% 0.6%
13:30 US Core Durable Goods Orders (MoM) (Nov) 0.3% 0.2%
13:30 US GDP (QoQ) (Q3) 3.5% 3.5%
13:30 CA Core Retail Sales (MoM) (Oct) 0.2% 0.1%
13:30 CA GDP (MoM) (Oct) 0.2% -0.1%
18:00 US U.S. Baker Hughes Oil Rig Count   873

 

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