The Dollar Index which measures the greenback against a basket of major currencies retreated from a three-week low of 95.82 to settle higher at 96.22 on strong data. The preliminary data showed that the US economy grew at a pace of 2.6% in the fourth quarter of 2019 versus an expectation of 2.2%. The upbeat data lifted the US treasury yields as it raised the chances of further monetary policy tightening in 2019. The US 10-year Treasury yields spiked to a three-week high of 2.733%, the USDJPY soared to a ten-week high of 111.84, and the EURUSD tumbled to a low of $1.1360.
Metals prices plunged as the dollar advanced along with Treasury yields on strong economic data. The gold ounce tumbled to a two-week low of $1308, and the silver ounce declined to a low of $15.56. Meanwhile, palladium continued to hover near $1540.
Oil prices extended gains, supported by OPEC-led supply cuts and US sanctions on PDVSA. Since the United States imposed sanctions on Venezuela's state-run oil company PDVSA, oil exports dropped by almost 40% to 920 thousand barrels per day. The West Texas Intermediate crude futures rose to a high of $57.85, the highest since mid-November, and Brent futures climbed to a high of $67.11. The U.S. energy services firm Baker Hughes will report the US rig count later today.
Major Economic Events
|8:55||EU||German Manufacturing PMI (Feb)||47.6||47.6|
|8:55||EU||Unemployment Change (Feb)||-5||-2|
|9:00||EU||Manufacturing PMI (Feb)||49.2||49.2|
|9:30||UK||Manufacturing PMI (Feb)||52.0||52.8|
|10:00||EU||CPI (YoY) (Feb)||1.5%||1.4%|
|10:00||EU||Core CPI (YoY) (Feb)||1.1%||1.1%|
|13:30||US||Core PCE Price Index (MoM) (Dec)||0.2%||0.1%|
|13:30||CA||GDP (MoM) (Dec)||0.0%||-0.1%|
|15:00||US||ISM Manufacturing PMI (Feb)||55.5||56.6|
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