USD Recovering from a Five-month Low
USD Recovering from a Five-month Low
Friday, USD moved up against most major currencies, recovering from a five-month low. Despite Friday's gains, USD marks the third straight week of losses for the index, as investors trimmed bets on the rise of the USD in the wake of the Federal Reserve's caution over interest rates this year.
USD index closed at 95.07, moving away from its lowest level in five months by 94.61.
USD/JPY settled at 111.50, moving further from a 17-month low on Thursday, as traders are on alert for BOJ intervention.
The euro declined to $12.60, retreating from a five-week high. It may get further support and reach levels of 1.15 and 1.20, if the Federal Reserve cut’s its outlook once again. However, trades may be subject to economic figures and euro may re-test $1.10.
GBP/USD dropped from $1.45, after recording its biggest daily gain since late 2009, positively affected by weak USD. GBP may be negatively affected by uncertainty over the Brexit referendum.
Gold prices settled at $1,255 at the end of Friday’s trading session. Gold failed to break $1,282 and could stabilize below $1,270 levels this week.
Friday, oil prices declined after the U.S rig count rose for the first time since December 2015, renewing worries of an oversupply after an output freeze proposal helped boost the market to the highest level this year. WTI failed to settle above $40, and fell back to trade around $39.35 and could decline to $37.
The most important economic events:
Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.
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