Dollar Extends Rally post NFP; Stock Futures Drop

USD

The dollar index, which measures the greenback against a basket of major currencies, extended its daily winning streak to five supported by upbeat jobs report. DXY climbed to a four-month high of 98.72 as the jobs report revealed that the US economy created 225 thousand jobs, the Unemployment Rate ticked higher to 3.6% as the Participation Rate surged 0.2% to 63.4%, and Average Hourly Earnings rose by 0.2% better than 0.1% in December. The EURUSD dropped to $1.0942, the GBPUSD plunged to a two-month low of $1.2870, whereas the USDJPY traded in a tight range between 109.50 and 110 as Coronavirus concerns kept the Japanese Yen in bid.

Equities

Major US stock-index futures faltered at a record high amid growing concerns over the effect of Coronavirus on the economy. Confirmed cases passed 40,000, and deaths are approaching 1000 mark. The Dow Jones Industrial Average futures dropped to 28850, the S&P500 futures declined to 3305, and Nasdaq futures dipped to 9330.

Metals

Gold prices traded sideways up as Coronavirus fresh woes raised the demand for safe-haven assets. The price of a gold ounce edged higher to $1576, the price of a silver ounce inched higher to $17.80, and palladium futures bounced off a two-week low to $2256.

Oil

Oil prices drifted lower as investors' were concerned about the effects of the Coronavirus on oil demand levels. The virus outbreak is weighing heavily on economic activity. Meanwhile, petroleum exporting countries are considering further output cuts to offset the reduction in demand. The West Texas Intermediate crude futures fell to $49.60, and Brent futures plunged to a fresh thirteen-month low of $53.65.

Major Economic Events

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