The dollar index which measures the greenback against a basket of major currencies rose to a high of 96.47 during the Asian session. The Chinese economic data showed that the Chinese economy grew at its slowest pace since 1990 in the fourth quarter of 2018. Moreover, the International Monetary Fund downgraded the global growth figures for 2019 and 2020 citing a slowdown in China and the Eurozone, and protectionism. The USDCAD rose to a two-week high of 1.3341, and the EURUSD dropped to a low of $1.1345.
Gold edged slightly higher ahead of the start of the European trading session as growth concerned made the safe-haven more appealing. The gold ounce rose from a low of $1277 to a high of $1284. Meanwhile, the silver ounce traded below $15.30, and Palladium dropped to $1360.
Oil drifted lower amid rising over a global economic slowdown. Oil prices climbed almost 20% this month on hopes of a trade deal between China and the United States and the effect of the OPEC+ production cut. However, the recent economic figures suggest that the global economy could face a slower-than-expected slowdown which could hurt the demand for oil in the coming two years. The West Texas Intermediate crude futures dropped to a low of $53.40, and Brent futures tumbled to $61.93.
Major Economic Events
|9:30||UK||Average Earnings Index +Bonus (Nov)||3.3%||3.3%|
|9:30||UK||Claimant Count Change (Dec)||20.0||21.9|
|9:30||UK||Unemployment Rate (Nov)||4.1%||4.1%|
|10:00||EU||German ZEW Economic Sentiment (Jan)||-18.4||-17.5|
|15:00||US||Existing Home Sales (Dec)||5.25||5.32|
|21:45||NZ||CPI (YoY) (Q4)||1.8%||1.9%|
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