The dollar index which measures the greenback against a basket of major currencies tumbled below the 96, to trade at a seven-week low of 95.82. The dollar was strong this year as the Federal Reserve hiked interest rates four times while maintaining a historically low unemployment rate, and stable inflation. However, the greenback weakened lately along with treasury yields as investors bet that the Fed will pause its monetary policy tightening cycle due to an economic slowdown. The US 10-year yields dropped to an eleven-month low of 2.68%. The EURUSD tested a high of 1.1496, while the USDJPY fell to a seven-month low of 109.12.
Metals prices kicked-off the year on a strong note as the dollar declined. The gold ounce rose to a seven-month high of $1287, the silver ounce traded at a five-month high of $15.48, and palladium hovered above $1260.
Oil prices drifted lower on woes of oversupply, and global economic slowdown. OPEC+ agreed to cut production starting January to maintain a stable market. The West Texas Intermediate crude futures fell to a low of $44.37, and Brent futures dropped to $52.87.
Major Economic Events
|8:50||EU||German Manufacturing PMI (Dec)||51.5||51.5|
|9:30||UK||Manufacturing PMI (Dec)||52.6||53.1|
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.