The dollar index which measures the greenback against a basket of major currencies hovered near a two-week high at 96.82 as investors await fresh fundamental drivers. The greenback digested the weakness of the manufacturing data and continued to cheer the better than expected preliminary fourth-quarter GDP data. Market participants will focus on the release of February's ISM Non-Manufacturing PMI for clues on the performance of the services sector. The US 10-year Treasury yields dropped to 2.73%, the USDJPY held near 112 level, and the EURUSD tumbled to a two-week low of $1.1309.
The Australian dollar was almost unchanged against other major currencies after the Reserve Bank of Australia Interest rate decision. The bank left interest rates unchanged at 1.50% and restated that low rates are supporting the economy. The AUDUSD is still trading in a tight range between $0.7067 and $0.7095, and EURAUD traded near 1.6000.
Metals prices continued to drift lower as the dollar edged higher. The gold ounce dropped to a five-week low of $1283, the silver ounce tumbled to a ten-week low of $15.06, and palladium declined to $1500.
Oil prices surged following the news that OPEC+ were planning to extend supply cuts till June. OPEC+ agreed in December to lower production for three months to boost prices that lost more than 25% in the second half of 2018. However, OPEC sources suggested that they could extend the cut duration to offset the effects of the global economic slowdown on oil prices. On the other hand, market participants still await further developments in the trade talks between China and the United States which could boost the global economy and raise oil demand. The West Texas Intermediate crude futures and Brent futures settled at $56.41 and $65.59 respectively.
Major Economic Events
|9:00||EU||Services PMI (Feb)||52.3||52.3|
|9:30||UK||Services PMI (Feb)||49.9||50.1|
|10:00||EU||Retail Sales (MoM) (Jan)||1.2%||-1.6%|
|15:00||US||ISM Non-Manufacturing PMI (Feb)||57.3||56.7|
|15:00||US||New Home Sales (Dec)||600||657|
|15:00||CA||Ivey PMI (Feb)||54.7|
|19:00||US||Federal Budget Balance (Jan)||25.0||-14.0|
|21:30||US||API Weekly Crude Oil Stock||-4.200|
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