Dollar Index Extends Gains Following Strong Economic Data

USD
The dollar index which measures the greenback against a basket of major currencies rose to a high of 95.75 ahead of the European trading session. The greenback found support from Friday's economic data releases. The data showed that the United States economy created 304 thousand jobs in January, while the unemployment rate rose to 4.0% as the participation rate climbed to 63.2%. Moreover, the Institute of Supply Management reported that the January Manufacturing PMI jumped to 56.6 versus an expectation of 54.2. The USDJPY advanced to a one-week high of 109.85, and the EURUSD tumbled to $1.1437.
 

Metals
Metals prices dropped as the dollar surged along with Treasury yields. The gold ounce retreated from an eight-month high of $1326 to trade at a low of $1312 during the Asian session, and the silver ounce declined to a low of $15.79.
 

Oil
Oil prices edged higher supported by OPEC-Led supply cuts and the US sanctions on Venezuela's crude export. A survey from Reuters showed that the OPEC oil supply declined by the largest amount in two years in January. The West Texas Intermediate crude futures jumped to a high of $55.64, and the Brent futures climbed to a two-month high of $63.38.
 

Major Economic Events

GMT
Country
Event
Expectation
Previous

9:30

UK

Construction PMI (Jan)

52.6

52.8

15:00

US

Factory Orders (MoM) (Nov)

0.3%

-2.1%


Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM . 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.