The dollar index which measures the greenback against a basket of major currencies settled sharply lower last week at 97.61, after testing a two-year high of 98.37 during the week. The softer-than-expected US economic data drove the chances of an interest rate cut by the Federal Reserve higher and the US Treasury yields lower. The chances of an interest rate cut in December rose to 42.7%, and the US 10-year yields declined to 2.29%, the lowest since October 2017. On the other hand, the growing trade tensions between the United States and China are raising concerns over the US economic outlook. The USDJPY tumbled to a low of 109.27, and the EURUSD jumped to a high of $1.1212.
Metals price edged higher as the dollar declined along with Treasury yields. The price of a gold ounce rallied to a high of $1287, the silver ounce hovered near $14.60, and palladium held steady at $1330.
Oil prices kicked-off the week on a weaker note amid growing concerns over the global economic growth. Last week, the economic data highlighted the weakness in the manufacturing sector in Asia, Europe, and the United States, which would drive lower the demand for oil. On the other hand, the escalating trade tensions between the United States and China are weighing on oil prices as they could lead the global economy into a recession. During the Asian session, the West Texas Intermediate crude futures dropped to a low of $58.21, and the Brent futures declined to $68.52.
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