Oil Prices Hit 3-Year Highs

On Monday, The Greenback declined to three-year lows vs. a basket of major currencies as demand for the common currency continued to be underpinned by anticipations that the ECB is preparing to cut its massive stimulus program.

  • The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.41% at 90.25 pips.

The Single currency rose by 0.52% vs. the Greenback, to settle at $1.2260. The Euro has rallied since last Thursday’s December ECB minutes said officials could consider a gradual shift in policy guidance from early 2018. Additionally, The Single received has boosted after German Chancellor Angela Merkel moved closer to forming a coalition government.

The Sterling pound rose by 0.45%, to settle at $1.3788, the highest levels since Britain’s vote to exit the EU in June 2016.

Against the JPY, the USD fell by 0.41%, to settle at ¥110.60. the JPY supported by comments from the BOJ Governor Haruhiko Kuroda on Monday highlighting the Japan's economic recovery.

Early on Monday, Gold prices settled above their highest level since September as the Greenback languished at three-year lows vs. a basket of major currencies. The U.S. dollar declined as traders continued to price in the risk of tighter policies in Japan and Europe.Gold Futures - Feb 18 (GCG8), fell as much as 0.55%, to settle at $1,342.10.

Earlier today, Crude prices settled near 3-Year Highs, as the market weighed rising U.S. drilling activity against ongoing efforts by OPEC and major producers to cut output to support oil prices.

Crude Oil WTI Futures - Feb 18 (CLG8) fell as much as 0.25% as $64.14 and Brent Oil Futures - Mar 18 (LCOH8) was down by 0.43% at $ 69.57.

The most important economic events:

  • GBP BOE's Tenreyro Speaks on Productivity at Event in London: (GMT 18:15) – Low.

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