Dollar Slips after Dovish FOMC Minutes

USD

The dollar index which measures the greenback against a basket of major currencies fell to a three-month low of 95.03 on expectations that the Federal Reserve will not be able to raise interest rates in 2019.  The minutes revealed that some policymakers didn't want to raise rates at the December 17-18 meeting. The Fed admitted that the latest market developments (Volatility/Global Growth Concerns) made the future of the monetary policy “less clear” than earlier. The USDJPY tumbled to a low of 107.77, and the EURUSD rose to a high of $1.1570.

Metals

Metals prices edged higher as the dollar tumbled. The gold ounce bounced off a low of $1279 to trade at a high of $1297. The silver ounce climbed to $15.75, while palladium hovered near $1320.

Oil

Oil prices continued higher supported by trade optimism, OPEC+ supply cut, and the drop in US crude inventories. The Energy Information Administration reported that the US weekly crude oil inventories dropped 1.680 million barrels last week to 439.79. The West Texas Intermediate crude futures rose to a three-week high of 52.56, and the Brent futures climbed to $61.66.

Major Economic Events

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