The Sterling pound rose to the highest level in four weeks against the United States dollar as the comments of the European Union Chief negotiator shrugged-off the fears of a "no-deal" Brexit. Michel Barnier declared that the European Union is prepared to offer the United Kingdom a partnership that has never been with any country. Market participants considered his comments as a game changer and that the EU wants a deal which might not be harsh to the UK. The GBPUSD traded above $1.30 level post the comments and reached a high of $1.3043 during the Asian session. The GBPJPY was a top gainer, logged its biggest daily gain since September, and closed at a four-week high of 145.57.
The dollar index which measures the greenback against a basket of major currencies ended lower for the fourth consecutive day due to the enhanced investor's risk appetite. DXY settled near a four-week low at 94.53, down 2.5% in two weeks. The economic figures continue to show that the US economy is solid, the CB consumer confidence rose to an eighteen-year high and the second reading of the second quarter GDP came out at 4.2% versus an expectation of 4.0%.
Major US indices settled higher with SPX500 and Nasdaq posting a record close for the fourth straight session supported by positive economic indicators and the possibility of a trade deal between Canada and the United States. The Dow Jones Industrial Average finished at 26124, the highest level since early February. The SPX500 rose 0.6% to 2914, and the tech-heavy Nasdaq Composite gained 1% to 8109.
Gold prices bounced-off a three-day low of $1200 and closed higher at $1207 as the dollar weakened. The gold ounce is trading in a tight range between $1200 and $1214 awaiting new fundamental developments that could drive gold higher or lower. The silver ounce finished the day slightly higher at $14.72.
Oil prices edged higher as the Energy Information Administration reported a drop in inventories. The crude oil inventories fell by 2.566 million barrels last week to a total of 405.79 million barrels. The West Texas Intermediate crude futures rose to a three-week high of $69.85 per barrel, and the Brent futures traded at a high of $77.51 per barrel.
Major Economic Events
|12:00||EU||German CPI (MoM) (Aug)||0.1%||0.3%|
|12:00||EU||German CPI (YoY) (Aug)||2.0%||2.0%|
|12:30||US||Initial Jobless Claims||214||210|
|12:30||US||Core PCE Price Index (YoY) (Jul)||2.0%||1.9%|
|12:30||CA||GDP (MoM) (Jun)||0.1%||0.5%|
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