Dollar Index Hits a Fresh Two-Week High, GDP Eyed

USD

The dollar index which measures the greenback against a basket of major currencies rallied towards a fresh two-week high of 97.05 as rivals tumbled. The growing uncertainty over Brexit and the rising chances of a no-deal Brexit are weighing on the pound. On the other hand, the Euro extended losses as German bund yields dipped further in the negative territory to the lowest levels since October 2016. The euro and pound account for almost 70% of the dollar index. Therefore, DXY rises as they fall and vice versa. Market participants await the release of the final reading of the fourth quarter GDP figures later today. A better than expected reading could provide additional support to the US dollar. The EURUSD dropped to a two-week low of $1.1234, and the GBPUSD plunged to a one-week low of $1.3125.

Metals

Precious metals extended losses as the dollar strengthened further. The price of a gold ounce declined to a one-week low of $1307, the silver ounce dropped to $15.20, and Palladium plunged to a six-week low of $1412.

Oil

Oil prices retreated from a four-month high amid growing concerns over the global economic outlook. Several central banks are admitting that their economic figures are coming out softer than expected. On the other hand, the Energy Information Administration reported that the US weekly crude oil inventories rose by 2.8 million barrels last week. The West Texas Intermediate crude futures tested a low of $58.79, and Brent futures slid to a low of $67.17.

Major Economic Events

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