The Euro Backed By German Factory Data

USD declined against a basket of currencies, in particular the euro, amid U.S negative data. However, the greenback recovered from its biggest weekly fall in more than 7 year’s against JPY. The European single currency surged against its U.S counterpart, backed by stronger German manufacturing data.

USD Index fell by 0.40% and touched 90.60, the lowest level since January 2015.

Concerns over Japanese policy makers' inability to hold off the yen's rise pushed the USD to an 18 month low of 106.14. In terms of the world's no. 3 economy, the Japanese Finance Minister Taro was quoted in the local media as saying he viewed the yen's strength as "extremely worrying" stoking speculation the BOJ could intervene to stem the currency's rise.  

Euro surged up to $1.15, thanks to stronger German manufacturing data and could touch levels of $1.17.

GBP/USD rose to $1.47 positively affected by soft U.S data. Traders will turn their attention to Markit UK PMI Manufacturing as it could negatively affect the GBP.

Gold touched the key level of $1,300 as the activity in China's manufacturing sector expanded. Thanks to the soft dollar and the slowing of U.S industrial activity, it failed to settle above $1,300 and traded around $1,290. The precious metal could retest levels of $1,300 during the course of the week.

Oil prices dropped by 2% on Monday, negatively affected by profit taking on last month's outsized rally and OPEC oversupply. WTI declined to $45 and could decline further to $44.

The most important economic events:

• GBP Markit UK PMI Manufacturing s.a. (APR): (GMT 10:30) Important – Forecast (51.2) – Previous (51.0).
• NZD Dairy Auction Whole Milk Powder MT (MAY 3): (GMT 14:00) Important – Forecast (N/A) – Previous ($2,156).
• NZD Dairy Auction Avg. Winning Price MT (MAY 3): (GMT 14:00) Important – Forecast (N/A) – Previous $2,263).
• CAD Bank of Canada's Poloz Speaks on Panel in Los Angeles: (GMT 18:30) Medium

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.