Pound Erases Gains; Dollar Recovers

USD

The dollar index, which measures the greenback against a basket of major currencies, inched higher to 98.33 during Asian trading recovering partial losses incurred on Veteran's day. The ongoing optimism over trade between China and the United States lowered the chances of further monetary policy easing by the Federal Reserve in the coming meetings. Therefore, the US Treasury yields and greenback edged higher. However, the bond market was closed on Monday for Veteran's day, allowing a slight dollar pullback. Currently, the USDJPY is trading above 109.20, and the EURUSD is dipping below $1.1020.

GBP

The British pound rose against rivals supported by Nigel Farage’s comments. Farage, serving as the leader of the Brexit Party since 2019, announced that his party would fight Labour candidates in the coming election. The GBPUSD spiked to a one-week high of $1.2896, but the pair surrendered partial gains earlier today as Farage stated that his party would give no more ground to the conservatives. On the data front, the GDP and industrial production figures missed estimates, while participants await the jobs report later today.

Metals

Gold prices drifted lower as investors' favored riskier assets. Recently, the stock market rallied to a fresh record high making stocks more attractive to investors, supported by the US-China trade developments. The price of a gold ounce dropped to a three-month low of $1447, the price of a silver ounce tumbled to $16.64, and palladium crashed to a one-month low of $1680, down 8% from an all-time high.

Oil

Oil prices continued to trade in a tight trading range awaiting fresh fundamental drivers. The West Texas Intermediate crude futures found support near a low of $55.60 and resistance near a high of $57.70. The Brent futures hit resistance above $63 and support slightly below $61.

Major Economic Events

Disclaimer 

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