The Euro continued to trade in a tight range against the dollar as market participants await the European Central Bank monetary policy meeting. The recent economic data raised investors' concerns over the economic activity in the region, and they are expecting the European Central Bank to intervene to support the slowing economy. The bank has several tools to use among them: lowering interest rates furthermore and resuming asset purchases. The EURUSD is trading slightly above $1.1040, and the EURAUD is holding above a six-week low of 1.6045.
The dollar index, which measures the greenback against a basket of major currencies, finished almost flat at 98.32 awaiting fresh fundamental drivers. The recent comments of the Federal Reserve Chairman about the economic outlook kept investors' questioning the future of US interest rates. Despite the drop in manufacturing activity, the US economic outlook remains solid. On the other hand, the renewed hopes of reaching a trade deal between China and the United States could buy the Federal Reserve some time before choosing to adjust the monetary policy again. The US 10-year yields climbed to a one-month high of 1.743%, and the USDJPY rallied to a six-week high of 107.847, supported by improved risk appetite.
Major US stock index futures finished higher on enhanced risk sentiment. The recent optimism over trade talks between China and the United States which will likely take place early October improved the appetite towards risks and drove risky assets higher. Furthermore, China released a tariff exemptions list for products from the U.S. earlier this morning. The Dow Jones Industrial Average futures advanced to a six-week high of 26972, the S&P500 futures rose to 2985, and the Nasdaq futures hovered near 7820.
Gold prices slipped to a one-month low as the US Treasury yields continued to recover on more favorable risk sentiment. The price of a gold ounce ended lower for the fourth straight day at $1485, the price of silver ounce fell to a two-week low of $17.75, while palladium raced to a two-month high of $1570.
Oil prices recovered from earlier losses on a drop in US oil stock. Oil benchmarks dropped from a six-week high weighed down by Trump's move to fire John Bolton, which could affect the future ties between Iran and the United States. However, the API reported a drop of 7.2 million barrels in US oil stocks last week, and prices reacted positively to the report. The West Texas Intermediate crude futures rose to $57.96, and Brent futures inched higher to $62.98. Market participants await the official numbers by the US Energy Information Administration later today.