News

Dollar Index Holds Steady, Trade Concerns Linger

USD

The dollar index, which measures the greenback against a basket of major currencies, continued to hover near a one-month high at 98.30. The Federal Reserve Chairman Jerome Powell testified on the economy before the Joint Economic Committee in Washington DC. He indicated that the monetary policy is in a good place, the Fed will act as appropriate based on economic data, and the US economy is in a really good place. On the data front, the October Consumer Price Index rose to 1.8%, while the Core Consumer Price Index ticked lower to 2.3% from 2.4% previously. Market participants await further hints on the US economic outlook as Powell testifies on the economy before the House Budget Committee. On the other hand, the fading optimism over trade between China and the United States weighed on Treasury yields, where the US 10-year yields declined to 1.832%. Also, the dollar was weaker against safe-haven currencies where the USDJPY dipped to 108.60, and USDCHF tumbled to 0.9875.

EUR

The euro recovered slightly against other rivals on solid economic data. The preliminary reading of the third-quarter GDP figures came in at 0.1%, beating estimates of a contraction of 0.1%. The data could signal that the German economy could have reached a turning point. The EURUSD edged higher to $1.1015, and EURAUD rose to a two-week high of 1.6202 supported by the Australian Dollar weakness.

Metals

Gold prices shed higher as investors' rushed to safety amid fading trade optimism. Trump's latest speech raised investors' concerns over the trade deal between China and the United States as he threatened with more tariffs in case of no-deal. The price of a gold ounce rose to $1470, the price of a silver ounce edged higher to $17.08, and palladium extended gains to $1732.

Oil

Oil prices continued to trade in a tight range awaiting fresh fundamental drivers. The American Petroleum Institute reported a drop of 0.5 million barrels in US crude oil stock last week. Market participants are looking forward to the official numbers by the US Energy Information Administration. The West Texas Intermediate crude futures rose to $57.70, and Brent futures inched higher to $62.87.

Major Economic Events

GMT Country Event Expectation Previous

9:30

UK

 Core Retail Sales (MoM) (Oct)

0.2%

0.2%

10:00

EU

GDP (YoY) (Q3) 

1.1%

1.1%

13:30

US

PPI (MoM) (Oct)

0.3%

-0.3%

15:00

US

Fed Chair Powell Testifies  

 

 

16:00

US

Crude Oil Inventories

1.649

7.929

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