The U.S. Dollar Hits a Nine-Month High
The U.S. Dollar Hits a Nine-Month High
On Monday, the Greenback rose to a 9-month high vs. a basket of major currencies as Trump’s probability of winning fell on growing expectations of a Federal Reserve interest rate hike by the end of the year. The U.S. dollar index touched new highs yesterday and traded at 98.84.
On the other hand, recent positive economic comments and data from central bank officials have supported such expectations, with investors yesterday, seeing a nearly 70% chance that the Fed Reserve could increase rates by the end of the year.
Gold traded flat with no changes due to uncertainty over the timing of an increase in U.S. interest rates.
Euro recovered and touched $1.09 vs. USD as euro zone purchasing managers' index rose to a 10-month high. Technically, it could not surge vs. USD and could trade at $1.0930.
GBP settled yesterday affected by the lack of economic data. Investors are awaiting the United Kingdom's budget, which will be the first statement after Brexit. Cable could settle at $1.22 and decline further to $1.20 vs. USD.
On Monday, Oil prices traded under pressure after Iraq said, it should be exempt from OPEC output curbs. U.S. crude settled at $50.50 yesterday and could trade at such level during the day.
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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