Dollar Index Rallies to Another Multi-month high, FOMC Minutes in Focus

USD

The dollar index, which measures the greenback against a basket of major currencies, soared to 99.48, its highest level since early October, as investors favored the US economic outlook over its rivals. The Eurozone economic news continued to disappoint. The German ZEW economic sentiment index, which gauges the economic outlook for the next six months, declined to 8.7 well below estimates of 21.7, and the current conditions dipped further into the negative territory scoring -15.7. Market participants are looking forward to the US data later on the day, among them building permits, producer price index, and the minutes of the last Federal Open Market Committee. The EURUSD plunged to 1.0785, the lowest since April 2017, and the USDJPY edged higher to 110.14.

Metals

Gold prices surged to early-January highs amid rising risks. The coronavirus outbreak weighed on investors sentiment where the US yields and stock-indices faltered. On the other hand, the US sanctioned Russia's Rosneft over Venezuela ties. Market participants feared that this move would revive geopolitical tensions. The price of a gold ounce climbed to $1609, the price of a silver ounce advanced to $18.37, and palladium futures skyrocketed to $2755.

Oil

Oil prices edged higher this morning to recover from yesterday's losses. The novel Coronavirus new cases fell for the second day in China, and the US was after cutting more Venezuelan crude from the market. The West Texas Intermediate crude futures rose to $52.61, and Brent futures soared to $58.29. The American Petroleum Institute will report the weekly crude oil stock later today.

Major Economic Events

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