Dollar Up On Strong U.S. Data
Dollar Up On Strong U.S. Data
U.S. Consumer Price Index (CPI) recorded its biggest rise in more than three years in April, as rents and gasoline prices rose, pointing to a steady inflation build-up that could push the Fed to hike interest rates later this year. Statements from Atlanta Fed President, Dennis Lockhart supported an interest rate hike. The U.S. dollar index settled at the opening levels of 94.50.
The EUR declined vs. USD and traded at $1.13, as U.S. industry data rose 0.7% in April. From a technical point of view, EUR could decline further to $1.13.
On Tuesday, the lower-than-expected UK inflation rate put pressure on the GBP. However, the Sterling remained intact vs. the greenback and traded around $1.45. But, the cable could decline further to $1.44.
The Japanese Yen fell yesterday to its lowest level in two weeks, negatively affected by oil prices. The JPY declined by 3.5% vs. USD, amid more verbal intervention, rebounding from an 18-month high.
Gold continued its gains on Tuesday and traded around $1,280. The yellow metal has traded both sides, negatively affected by the strong USD. From a technical point of view, the levels of $1,280 could enforce the precious metal to retract.
Oil prices hit their highest levels in six-months, positively affected by unexpected supply disruptions in Nigeria. WTI traded at 48.50 and could touch $50 soon.
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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