Dollar Index Rebounds from a two-week low on Safe Haven Demand
Dollar Index Rebounds from a two-week low on Safe Haven Demand
Equities
Major US indices finished sharply lower, weighed down by the recent bond market developments which hint to a possible economic slowdown. Moreover, the woes of a failure of reaching a trade deal between China and the United States pressured investors' sentiment. The Dow Jones Industrial Average futures fell 3.1% to 25027, the S&P500 futures dropped 3.2% to 2700, and the Nasdaq futures declined 3.6% to 6802.
USD
The dollar index which measures the greenback against a basket of major currencies bounced from a two-week low of 96.38 to settle almost flat for the day at 96.96. Despite the pullback, investors remain cautious as the inversion in the US yield curve could force the Fed to pause interest rate hikes. Treasury yields continued to slide with the 5-year yields dropping below the 2-year and the 3-year yields to signal a slowdown in the economic activity ahead.
Metals
Gold prices retreated from a five-week high as the dollar edged higher. The gold ounce fell from $1242 to trade at $1233 ahead of the European trading session. Meanwhile, the silver ounce tested a low of $14.40.
Oil
Oil prices fell from a two-week high on concerns over a global economic slowdown, and rising US supplies. The drop in the global stock market weighed on the performance of oil prices. Moreover, the American Petroleum Institute reported that the US weekly crude oil stock rose 5.360 million barrels to a total of 448 million barrels. The West Texas Intermediate crude futures lost 0.9% to $52.57, and the Brent futures tumbled 0.8% to $61.34.
Major Economic Events
| GMT | Country | Event | Expectation | Previous |
|---|---|---|---|---|
| 9:30 | UK | Services PMI (Nov) | 52.5 | 52.2 |
| 14:45 | US | Services PMI (Nov) | 54.4 | 54.4 |
| 15:00 | CA | BoC Interest Rate Decision | 1.75% | 1.75% |
| 19:00 | US | Beige Book |
Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.
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