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Market News

Dollar Index Soars on Upbeat Economic Outlook, Jobs Report in Focus

February 7, 2020

 

USD

The dollar index, which measures the greenback against a basket of major currencies, rallied to almost a four-month high of 98.57 as solid US economic outlook boosted the demand for dollar safety. A series of economic indicators surprised to the upside this week, cutting investors' concerns over the US economic activity, allowing investors to favor the dollar to rivals. Market participants are looking forward to the January jobs report to be published today. The USDJPY rose a two-week high of 110.02, the EURUSD tumbled to a four-month low of $1.0963, and GBPUSD declined to a six-week low of $1.2921.

Metals

Gold price finished higher for the second consecutive day as novel Coronavirus concerns kept risk appetite in check. The confirmed cases exceeded 30,000 despite all the taken measures to stop the outbreak. On the other hand, market participants are awaiting the US jobs report to confirm the positive data streak. The price of a gold ounce rose to $1569, the price of a silver ounce advanced to $17.88, while palladium futures plunged to a one-week low of $2171.

Oil

Oil prices held gains on headlines that Russia could back further output cuts. There were suggestions that OPEC+ should cut output by 600,000 barrels to offset the effect of the novel Coronavirus on oil prices. The Chinese demand for oil dropped as China locked down cities to avoid a bigger outbreak, and the economic activity was negatively affected. The West Texas Intermediate crude futures hovered near Wednesday's close of $51.15, while Brent futures traded near $55. The spread between Brent and WTI declined to a fresh five-month low of $3.92.

Dollar Index Soars on Upbeat Economic Outlook, Jobs Report in Focus

Major Economic Events

GMT
Country
Event
Expectation
Previous
13:30
US
Average Hourly Earnings (MoM) (Jan)
0.3%
0.1%
13:30
US
Nonfarm Payrolls (Jan)
160
145
13:30
US
Unemployment Rate (Jan)
3.5%
3.5%
13:30
CA
Employment Change (Jan)
15.0
35.2
13:30
CA
Unemployment Rate (Jan)
5.6%
5.6%
15:00
CA
Ivey PMI (Jan)
53.3
51.9

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.