Dollar Ticks Higher as Treasury Yields Recover

USD

The dollar index which measures the greenback against a basket of major currencies rebounded from a low of 96.41 to trade at a high of 96.60 during the Asian session. The yield curve inversion is signaling a recession which would affect the monetary policy stance of the Federal Reserve. The US 10-year treasury yields recovered to 2.446% after dropping to a fifteen-month low of 2.375%. Market participants await the release of housing data today along with CB Consumer Confidence. The USDJPY rose to a high of 110.24, and the EURUSD fell to $1.1303.

GBP

The British pound traded in a tight range against the United States dollar amid growing Brexit uncertainties. Until now, Theresa May failed to secure additional support to her deal in order to introduce a third vote. Yesterday, the House of Commons approved amendment A which allows the MPs to introduce alternatives to May's plan. These alternatives could be a second referendum, staying in the customs union, or canceling Brexit. On the other hand, amendment F which is a plan to block "no-deal" Brexit failed to pass. The GBPUSD is trading slightly lower at $1.3190, and the GBPJPY is hovering near 145.30.

Metals

Gold rallied towards a four-week high of $1324 as the dollar dropped along with Treasury yields. However, the bullion erased gains and fell to $1317 as yields recovered. The silver ounce dropped to $15.45, and palladium bounced off a two-week low of $1531 to trade at a high of $1580.

Oil                                                                                    

Oil prices surged as the ongoing supply cuts continue to provide support despite rising signs of a sharp global economic slowdown. The West Texas Intermediate crude futures rebounded from a one-week low of $58.15 to trade at a high of $59.49, and Brent futures advanced to $67.66. The American Petroleum Institute will report the weekly US crude oil stock later today.

Major Economic Events

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.