The U.S. Dollar Extends Its Gains
The U.S. Dollar Extends Its Gains
On Friday, the U.S. dollar jumped to its highest level since April 2003 vs. a basket of major currencies, touching its biggest two week increase since March 2015 as investors piled bets on a massive dose of fiscal stimulus under a Trump administration. The U.S. dollar index surged to 101.40 pips at the end of last week.
The U.S. dollar rose as much as 1% vs. JPY and touched ¥111, the highest level in more than six-months. The Greenback gained around 7.5% in the last two weeks vs. JPY, its strongest levels since 1988.
Technically, the Greenback could re-test levels of ¥110 vs. JPY and is likely to touch ¥113 during the coming period.
UK’s first budget plan since the ‘Brexit’ vote will seek to get the economy prepared for the challenges of leaving the European Union and help struggling families through tough times ahead, finance minister Philip Hammond said on Sunday. The British pound was negatively affected by a strong USD and declined to $1.2330 at the end of last week’s trading session. Technically, it could decline to $1.22.
Also on Friday, the yellow metal declined to its lowest level since May, as the dollar touched its highest level in 13 and a half years.
Gold prices settled at the support of $1,208. Technically, such level could be broken by USD and the yellow metal could decline further to $1,170.
Oil prices jumped at the end of last week’s trading session and WTI settled at $46. Technically, it could re-test $45.50 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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