Dollar Soars on Solid Economic Data

USD

The dollar index, which measures the greenback against a basket of major currencies, rose to its highest levels in one-week trading at a high of 98.01 supported by stronger economic data. The Institute of supply management reported a better than expected reading of non-manufacturing PMI, which came out at 54.7 beating estimates of 53.5. The US 10-year yields spiked to a seven-week high of 1.874% as the data could grant the Fed more time before moving rates again. Currently, the CME Fed Watch Tool rule-out any interest rate cut by the Fed in the next nine meetings. The USDJPY found upside resistance at 109.28, the EURUSD dropped to a three-week low of $1.1063, and the GBPUSD drifted lower to $1.2860.

Metals

Gold prices plunged as the dollar edged higher along with US Treasury yields. The ongoing optimism over trade and better-than-expected economic data lowered the chances of further monetary policy easing by the Federal Reserve, and enhanced risk sentiment. The price of a gold ounce dropped to a three-week low of $1480, the price of a silver ounce declined to a two-week low of $17.49, and palladium extended losses to trade at $1760.

Oil

Oil prices continued to trade in a tight range awaiting fresh fundamental drivers. Recently, the optimism over a trade deal between China and the United States boosted oil prices. On the other hand, the American Petroleum Institute reported a rise of 4.260 million barrels in US oil stock last week. The US Energy Information Administration will announce the official numbers later today. The West Texas Intermediate crude futures and Brent futures posted a six-week high of $57.46 and $63.17, respectively. 

Major Economic Events

Disclaimer 

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