Dollar Index Slides on Expectations of a Dovish Fed

USD

The dollar index which measures the greenback against a basket of major currencies traded near a two-week low of 96.40 as investors expect a dovish tone by the Federal Reserve on Wednesday. The latest inflation data ticked down slightly while the preliminary growth figures were better-than-expected. The Federal Reserve could cut inflation and growth forecast which could also diminish the chances of further tightening. The CME Fed watch tool showed an increase in the probability of an interest rate cut in the fourth quarter of 2019. The EURUSD rose to a two-week high of $1.1351, and the USDCHF tumbled to a low of 1.0007.

Metals

Metals prices surged as the dollar declined along with Treasury yields. The price of a gold ounce bounced-off $1293 to trade near $1305, the silver ounce advanced to $15.35, and palladium continued to hover above $1550.

Oil

Oil prices continue to hover near a four-month high supported by OPEC+ led cuts while gains remain capped by the threats global economic slowdown. The Saudi Oil minister restated that the current supply cuts policy could be extended towards June as the market remain oversupplied. The West Texas Intermediate crude futures traded at a high of $58.55, and Brent futures rose to a high of $67.39.

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