Doha’s Meeting Ends without Deal

USD declined at the end of last week’s trading session, negatively affected by soft U.S data as consumer sentiment unexpectedly fell for the fourth straight month in April, amid growing concerns about weaker economic growth. USD index touched 94.68 points to gain 0.46%.

Oil prices declined after a meeting held in Qatar by the world’s biggest producers, ended without an agreement to freeze output on Sunday, with Saudi Arabia insisting Iran should be part of any agreement.

WTI could break levels of $40 and it is likely that oil prices will pay “a heavy price” because of the meeting.

EUR recovered against USD, rebounding from $1.1230 its lowest level in two weeks. The pair could trade in a narrow range before the ECB meeting later this week.

GBP pared its losses vs. USD to trade at $1.4180, thanks to weak U.S. data. GBP outlook remains negative and may decline further to levels of 1.141 and 1.140.

USD/JPY opened on a bearish gap by 50 points at the beginning of the week. The pair was affected by Doha’s meeting and traded at 108.25 as the greenback failed to break the levels of 110. The Yen’s strength could continue to keep gains as investors move towards “safe havens” in light of the Doha’s meeting, which could push oil prices to retreat again.

Gold stumbled a little and traded at $1,233. The precious metal could move further as major oil producers’ failure to agree on an output freeze sent crude prices falling. Therefore, the yellow metal could retest $1,260.

The most important economic events:

• USD NAHB Housing Market Index (APR): (GMT 16:00) Medium – Forecast (59) – Previous (58). 
• USD U.S. to Sell 3-Month Bills: (GMT 17:30) Low
• USD U.S. to Sell 6-Month Bills: (GMT 17:30) Low

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.