US dollarMarket sentiment was a quiet affair, as most majors traded in a tight range amid persistent broad-based US dollar strength and cautious optimism. China’s Hubei province reported a drop in new coronavirus cases while investors continued to fret over the negative economic fallout of the virus outbreak globally, as governments stepped up measures to soften the impact.
Within the currency basket, EUR/USD hit a new 34-month low at 1.0828, as the US dollar index refreshed a four-month top. GBP/USD, on the other hand, consolidated the latest upsurge around 1.3050 amid UK Cabinet reshuffle. Meanwhile, USD/JPY fluctuated between gains and losses while below 110.00 amid mixed Asian equities, lower Treasury yields and moderate gains in the S&P 500 futures.
Oil prices have stabilized with WTI topping $51 despite ongoing tensions within the OPEC+ group and the traditional safety bet, gold, also traded on the back foot below $1580.
It’s a busy economic docket and markets gear up for preliminary GDP growth numbers for Eurozone for the final quarter of 2019 at 10:00 GMT respectively. The data will grab a lot of attention, given the rising concerns over the worsening economic conditions in the Euro area’s economic powerhouse, Germany.
The UK political developments will also be closely watched amid a lack of fundamental news from the UK docket.
Moving on, a flurry of US economic releases will dominate the NA session, with the key Retail Sales at 13:30 GMT, Industrial Production at 14:15 GMT and Michigan Consumer Sentiment Index at 15:00 GMT. Oil traders will look forward to the Baker Hughes US Oil Rigs Count data due at 18:00 GMT for near-term trading opportunities.