News

Dollar Index Hovers Near a Six-Week High amid Rising Uncertainty

USD

The dollar index which measures the greenback against a basket of major currencies rose to a six-week high of 96.75, supported by the rising market risks and uncertainty.  The weakening economic data from the Eurozone and the Brexit uncertainty raised the demand for the dollar. Moreover, the dollar yields remain the best among the G10 countries which keep the dollar at a bid. Market participants await the inflation figures from the United States this week, and the new round of trade talks between China and the United States which will take place on February 14-15. The USDJPY is trading near 110, and the EURUSD dropped to a two-week low of $1.1310.

Metals

Metals prices drifted lower as the dollar advanced further. The gold ounce declined to a low of $1310, the silver ounce dropped to $15.73, and palladium tumbled to $1375.

Oil

Oil prices fell amid rising trade and growth concerns. The latest downgrades of the 2019 growth forecasts weighed on oil prices as they hint to lower oil demand. Moreover, the unsolved trade issues between the United States and China continue to impose risks on the economic outlook. On the other hand, the head of Rosneft, the Russian oil giant, wrote a letter to the Russian president claiming that the latest deal with OPEC is a real threat and supports the goals of the United States. The West Texas Intermediate crude futures fell to a low of $51.88, and the Brent futures traded near $61.30.

Major Economic Events

GMT Country Event Expectation Previous
9:30 UK GDP (YoY) (Q4) 1.4% 1.5%
9:30 UK GDP (QoQ) (Q4) 0.3% 0.6%
9:30 UK GDP (MoM) 0.0% 0.2%
9:30 UK Industrial Production (MoM) (Dec) 0.1% -0.4%
9:30 UK Manufacturing Production (MoM) (Dec) 0.2% -0.3%

 

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