News

Dollar Index Bounces Off a Three-Week Low, GDP Figures Eyed

USD

The dollar index which measures the greenback against a basket of major currencies bounced off a three-week low of 95.88 to trade at 96.16 near the 100-hour exponential moving average. The greenback got lifted by the rising uncertainty over the progress in US-China trade talks. Moreover, market participants await the fourth quarter preliminary GDP figures. The US 10-year Treasury yields climbed to a high of 2.699%, the USDJPY is trading near 110.70, and the EURUSD tumbled to $1.1361.

GBP

The British pound extended gains amid growing chances that Britain could be avoiding a "no-deal" Brexit. The fact that Theresa May is offering the lawmakers a chance to vote for "no-deal" Brexit or delay the Brexit. The GBPUSD climbed to a high of 1.3350, the highest since July 9th, and the GBPJPY jumped to 148.04, the highest since mid-November.

Metals

Gold prices tumbled to a two-week low of $1316 as the dollar recovered along with US Treasury yields. However, gold found support as Trump and Kim failed to reach an agreement where the US will remove sanctions, and traded higher at $1323. The silver ounce declined to a low of $15.72, while palladium hovered near $1550.

Oil

Oil prices finished higher for the second consecutive day after the EIA report. The U.S. Energy Information Administration reported that the weekly US crude oil inventories dropped by 8.647 million barrels last week. The West Texas Intermediate crude futures rose to a high of $57.37, and Brent futures advanced to a high of $68.66.

Major Economic Events

GMT Country Event Expectation Previous
13:30 US GDP (QoQ) (Q4) 2.6% 3.4%
13:30 US GDP Price Index (QoQ) (Q4) 1.7% 1.5%
13:30 US Initial Jobless Claims 221 216
14:45 US Chicago PMI (Feb) 58.1 56.7

 

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