The dollar index which measures the greenback against a basket of major currencies rebounded from a three-week low of 95.16 to settle higher at 95.56. The greenback was under pressure lately on expectations that the Fed will not be able to further tighten its monetary policy in 2019. The FOMC meeting outcome on Wednesday showed that the Fed would be more patient before raising interest rates. However, investors' focus shifted towards the January jobs report that will be released later today.
Metals prices retreated from a multi-month high as the dollar gained back its strength. The gold ounce fell from a nine-month high of $1326 to trade at a low of $1316, and the silver ounce tumbled from a six-month high of $16.16 to a low of $15.89.
Oil prices drifted lower following weak Chinese data. Prices were earlier finding support from the hopes of the trade talks between China and the United States, and the US sanctions on PDVSA. However, the latest Chinese economic data raised concerns over a global economic slowdown. The West Texas Intermediate crude futures fell to a low of $53.54, and Brent futures dropped to a low of $60.70.
Major Economic Events
|8:55||EU||German Manufacturing PMI (Jan)||49.9||49.9|
|9:30||UK||Manufacturing PMI (Jan)||53.5||54.2|
|10:00||EU||CPI (YoY) (Jan)||1.4%||1.6%|
|13:30||US||Nonfarm Payrolls (Jan)||165||312|
|13:30||US||Unemployment Rate (Jan)||3.9%||3.9%|
|13:30||US||Average Hourly Earnings (MoM) (Jan)||0.3%||0.4%|
|15:00||US||ISM Manufacturing PMI (Jan)||54.2||54.3|
|18:00||US||U.S. Baker Hughes Oil Rig Count||862|
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.