The dollar index (DXY00) fluctuated on Monday, trading higher in the morning before declining following President Trump’s statements to CBS News about the Iran war, indicating it might soon end. Oil prices initially surged above $100 per barrel, which supported the dollar due to the U.S. being the largest oil producer, but fell later after G-7 finance ministers pledged to release strategic reserves.
In other market movements, the EUR/USD rose by 0.17% as the dollar weakened, while the USD/JPY remained relatively unchanged. Swaps markets discount a 4% chance of a 25 basis point rate cut at the upcoming Federal Open Market Committee meeting on March 17-18. Precious metals saw mixed results, with April COMEX gold closing down 1.07% and May COMEX silver up 0.25%. Central bank demand supported gold prices, with China’s gold reserves increasing by 40,000 ounces in January.
