Greenback Suffers from Sprawling Oil Prices

The U.S. dollar has lost ground against its G10 counterparts. Most of the U.S. dollar weakness has come from a move back into commodities. WTI jumped $1.55 over the weekend and is currently trading at $49.46 U.S. a barrel. Gold has also made a move higher to $1,237 U.S. a troy ounce with support at $1,230.00 and resistance at $1256.00.

There are no major releases scheduled for this week in the U.S., therefore the big dollar will trade on broader market sentiment. WTI has gained after Saudi Arabia and Russia agreed to extend production cuts out to March 18, 2018 at a joint press conference in Beijing over the weekend. The Canadian dollar has gained on the greenback with higher metal prices and the spike in oil. Major economic data this week will come Friday for Canada with the release of Consumer Price Index figures and Retail Sales numbers.

The euro is holding firm after German Chancellor Angela Merkel won the NRW state election on Sunday. Chancellor Merkel is scheduled to meet with French President Emmanuel Macron this morning. European stock markets are also outperforming today to give the euro support.

The pound sterling is also trading firmer in an environment of general U.S. dollar weakness. On the data front, focus this week will be on U.K. inflation numbers tomorrow and employment data on Wednesday.

The Australian dollar is one of the top performers today as its pairing with the greenback continues to higher after it bounced off its low last week around the $0.7350 level. A rally in oil prices helped to lift metal prices which offset the impact of the weaker Chinese Industrial Production data release overnight. Gold is up 0.57% while copper is up 1.05% this morning.

Oil (WTI): $49.53 U.S. per barrel

Gold: $1,234.58 U.S. per ounce

Silver: $16.74 U.S. per ounce

Copper: $254.60 U.S. per tonne

Dollar Index: 98.84

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