Dollar Extends Losses amid Enhanced Risk Appetite

USD

The dollar index, which measures the greenback against a basket of currencies, extended losses falling to almost a three-week low of 96.73 as investors favored riskier currencies. The euro and pound edged higher as the new European Union Commission President Ursula von der Leyen stated that the EU may need to extend the transition period deadline to reach new trade terms with the United Kingdom. The GBPUSD inched higher to $1.3125, and the EURUSD advanced to $1.1210, the highest since early August 2019.

Metals

Gold prices extended rally higher as the dollar weakened. The price of a gold ounce rose to $1516, the highest since early November, the price of a silver ounce rallied to $18 handle, and palladium recovered to $1913. The recent geopolitical tensions following US airstrikes in the Middle East could promote the demand for gold safety.

Oil

Oil prices were mixed this morning with Brent futures retreating from a fresh-three month high, and crude futures hovering near Friday's levels. The US Airforce conducted several airstrikes in the Middle East over the weekend, raising investors' geopolitical concerns. The West Texas Intermediate crude futures held steady above $61.50, and Brent futures dropped to $66.80. The spread between the WTI and Brent futures declined to a ten-day low of $5.21.

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.