News

Dollar Surrenders Partial Gains on Mixed Data

USD

The dollar index which measures the greenback against a basket of major currencies retreated from a three-week high of 99.31 to trade lower near 99.06 during today's Asian session weighed down by mixed economic data released on Friday. Despite the surge in Core Durable Goods Orders in August, the Fed's favorite inflation gauge - Core PCE Price Index- rose by only 0.1% missing estimates of 0.2%. The soft economic data revived the chances of further monetary policy easing by the Federal Reserve. The US 10-year yields dropped to 1.672%, the USDJPY tumbled to 107.80, and the EURUSD bounced-off the lows to trade higher at 1.0958.

Metals

Gold prices extended losses on enhanced investors' risk sentiment. The trade tensions between China and the United States eased helping investors to shift into riskier assets, and the recent manufacturing data from China lessened their concerns over a global economic slowdown. The price of a gold ounce dropped to a low of $1488, the price of a silver ounce fell to $17.25, while palladium soared to a record high of $1702.

Oil

Oil prices continued to trade in a tight range awaiting fresh fundamental drivers. Investors' concerns over supply disruption following Aramco's attacks receded. The West Texas Intermediate crude futures declined to $55.72, and Brent futures drifted lower to $60.72.

Major Economic Events

GMT Country Event Expectation Previous

8:30

UK

GDP (YoY) (Q2)

1.2%

1.2%

8:30

UK

GDP (QoQ) (Q2)

-0.2%

-0.2%

9:00

EU

Unemployment Rate (Aug)

7.5%

7.5%

12:00

EU

German CPI (MoM) (Sep)  

0.1%

-0.2%


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