Dollar Extends Losses; Commodity Currencies Rally

Dollar Extends Losses; Commodity Currencies Rally


The dollar index which measures the greenback against a basket of major currencies finished sharply lower at 97.06 and extended losses during today's Asian session towards a two-week low of 96.95. The February factory orders came in at -0.5% as expected to confirm a drop in the economic activity. On the other hand, the rally in commodity prices supported commodity currencies against the United States Dollar. The USDCAD tumbled to a three-week low of 1.3293, the AUDUSD rallied to a two-week high of $0.7149, and the NZDUSD surged to $0.6755. Market participants await the release of February JOLTs Job Openings to grasp a further insight about the labor market.


Gold prices edged higher as the dollar weakened, but the bullion surrendered gains as Treasury yields surged. The price of a gold ounce climbed to a two-week high of $1303 and retreated to settle at $1297. The silver ounce jumped to a high of $15.28, and palladium recovered to $1390.


Oil prices extended gains supported by the US sanctions on Iran and Venezuela along with OPEC-led supply cuts. The Trump administration imposed new sanctions on Venezuela and is planning more sanctions on Iran. On the other hand, Saudi Oil Minister Khalid Al-Falih confirmed that OPEC+ is committed to reducing supply. He added, that the planned April meeting has been canceled, and will be replaced with a meeting in May where OPEC+ will discuss whether to extend cuts beyond summer 2019. The West Texas Intermediate crude futures rose to a fresh five-month high of $64.74, and Brent futures soared to $71.31. Market participants await the weekly crude oil stock by the American Petroleum Institute ahead of tomorrow's release of the official numbers by the US Energy Information Administration.

Major Economic Events

GMT Country Event Expectation Previous



JOLTs Job Openings (Feb)





API Weekly Crude Oil Stock




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