US Dollar Index Weakens on the First Trading Day of the Year

USD

The dollar index which measures the greenback against a basket of major currencies tumbled below the 96, to trade at a seven-week low of 95.82. The dollar was strong this year as the Federal Reserve hiked interest rates four times while maintaining a historically low unemployment rate, and stable inflation. However, the greenback weakened lately along with treasury yields as investors bet that the Fed will pause its monetary policy tightening cycle due to an economic slowdown. The US 10-year yields dropped to an eleven-month low of 2.68%. The EURUSD tested a high of 1.1496, while the USDJPY fell to a seven-month low of 109.12.

Metals

Metals prices kicked-off the year on a strong note as the dollar declined. The gold ounce rose to a seven-month high of $1287, the silver ounce traded at a five-month high of $15.48, and palladium hovered above $1260.

Oil

Oil prices drifted lower on woes of oversupply, and global economic slowdown. OPEC+ agreed to cut production starting January to maintain a stable market. The West Texas Intermediate crude futures fell to a low of $44.37, and Brent futures dropped to $52.87.

Major Economic Events

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