The dollar index which measures the greenback against a basket of major currencies rose to a two-week high of 96.24 following Trump's State of the Union speech. Trump reassured the need to build a border wall to stop illegal immigration. Also, he talked about the trade issues between the United States and China. He accused China of targeting US industries and stealing intellectual property for years. He added that a new trade deal should put an end to unfair trade practices, reduce the chronic trade deficit, and protect American jobs. On the other hand, the dollar was favored against European currencies amid rising Brexit uncertainties and weakening economic data from the Eurozone. The EURUSD dropped to a two-week low of 1.1379, the GBPUSD declined to a low of $1.2924, and the USDCAD rose to a one-week high of 1.3199.
Gold prices rose slightly as the US Treasury yields dropped amid weak economic data. The price of a gold ounce rose to a high of $1317, while the silver ounce held steady near $15.80, and palladium hovered near $1380.
Oil prices finished lower for the second consecutive day over concerns of a global economic slowdown. The latest Manufacturing PMIs were weaker around the world which raised expectations of lower oil demand. On the other hand, the American Petroleum Institute reported that the US weekly crude oil stock rose by 2.514 million barrels last week. The West Texas Intermediate crude futures declined to a low of $53.34, and Brent futures tumbled to a low of $61.62.
Major Economic Events
Ivey PMI (Jan)
Crude Oil Inventories
Federal Budget Balance
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