All Eyes on Janet Yellen's Speech

Dollar declined against a basket of major currencies, negatively affected by soft U.S. data, as it shows retreating inflation and a downward revision to consumer spending dampening possibilities of a rapid pace of Federal Reserve interest rate increases.

USD index eased from an early 1-1/2-week high of 96.39 to a session low of 95.85. Consumer spending moved up 0.1% as households reduced purchases after a downward revision 0.1% gain in January, the Commerce Department reported. Markets await Federal Reserve Chair Janet Yellen's speech, later today, for fresh signals on the outlook for U.S. interest rate hikes.

Euro rose against Dollar to $1.1219, the highest level since 23rd March, positively affected by weak U.S. data and the statements of Fed members about interest rates.   GBP/USD rose to $1.4250, thanks to weak U.S. data, but the “Brexit” campaign is still having a negative impact on the dollar.  

USD/JPY settled above 113.50 levels as Asian indices rebound at the opening of the markets. Gold pared its losses and traded at $1,221, positively affected by soft U.S. data. The precious metal could re-test levels of $1,200 during this week, if everything goes well with Janet Yellen's speech.

Oil price declined as European markets observed the Easter break. On the other side, U.S. data showed that the hedge funds and other big speculators still slow to create long positions after the oil price bounced of the past two months. WTI settled at $39.20 and failed to break $40. 

The most important economic events:

• USD Consumer Confidence (MAR): (GMT 16:00) – Important – Forecast (94.0) – Previous (92.2).
• US Fed Chair Janet Yellen Speaks to Economic Club of New York (GMT 17:30) Very Important.

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.