The dollar index which measures the greenback against a basket of major currencies rebounded from a low of 96.41 to trade at a high of 96.60 during the Asian session. The yield curve inversion is signaling a recession which would affect the monetary policy stance of the Federal Reserve. The US 10-year treasury yields recovered to 2.446% after dropping to a fifteen-month low of 2.375%. Market participants await the release of housing data today along with CB Consumer Confidence. The USDJPY rose to a high of 110.24, and the EURUSD fell to $1.1303.
The British pound traded in a tight range against the United States dollar amid growing Brexit uncertainties. Until now, Theresa May failed to secure additional support to her deal in order to introduce a third vote. Yesterday, the House of Commons approved amendment A which allows the MPs to introduce alternatives to May's plan. These alternatives could be a second referendum, staying in the customs union, or canceling Brexit. On the other hand, amendment F which is a plan to block "no-deal" Brexit failed to pass. The GBPUSD is trading slightly lower at $1.3190, and the GBPJPY is hovering near 145.30.
Gold rallied towards a four-week high of $1324 as the dollar dropped along with Treasury yields. However, the bullion erased gains and fell to $1317 as yields recovered. The silver ounce dropped to $15.45, and palladium bounced off a two-week low of $1531 to trade at a high of $1580.
Oil prices surged as the ongoing supply cuts continue to provide support despite rising signs of a sharp global economic slowdown. The West Texas Intermediate crude futures rebounded from a one-week low of $58.15 to trade at a high of $59.49, and Brent futures advanced to $67.66. The American Petroleum Institute will report the weekly US crude oil stock later today.
Major Economic Events
|12:30||US||Building Permits (Feb)||1.320||1.317|
|14:00||US||CB Consumer Confidence (Mar)||132.0||131.4|
|20:30||US||API Weekly Crude Oil Stock||-2.133|
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