Euro Softens on Growth Concerns

EUR

The Euro finished last week sharply lower against rivals amid growing concerns over the economic growth of the region. The latest economic figures were a bit soft. The preliminary reading of the 4th quarter of 2019 GDP came in at 0.9%, missing estimates of 1.0%. The new European Central Bank president Christine Lagarde restated that governments should do more on the fiscal side to support their economies. On the other hand, the French President Emmanuel Macron announced a 10-year vision for the European Union and urged European countries to support. Market participants are looking forward to the Euro group meetings outcome and the Bundesbank monthly report. The EURUSD is trading slightly above a thirty-three month low of $1.0827, the EURJPY bounced to 119.06, and the EURGBP recovered to 0.8315.

USD

The dollar index, which measures the greenback against a basket of major currencies, settled at a four-month high of 99.17 on upbeat US economic outlook. The latest US economic data were solid and signaled a more robust economic activity in January, driving investors to favor the US dollar over its rivals. The United States is closed today for President's Day.

Metals

Gold prices faltered at a two-week high of $1585 and drifted lower to $1579 as the dollar continued rallied to a fresh four-month high. Investors are closely monitoring the novel Coronavirus outbreak developments and its effects on the global economy. Meanwhile, the price of a silver ounce jumped to $17.89, and palladium futures advanced to $2356.

Oil

Oil prices edged higher amid hopes of a further output cut by OPEC+. Last week, the International Energy Agency lowered the expected oil demand and demand growth for 2020 due to the negative effects of the Coronavirus outbreak on global economic activity. Oil producers are considering lowering their output to offset the drop in demand to sustain a stable market. The West Texas Intermediate crude futures rose to $52.65, and Brent futures advanced to $57.49.

Major Economic Events

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