U.S. Dollar Stands Tall

On Monday, Eurozone finance ministers agreed to give Greece short-term debt relief measures. Such an agreement could reduce the country's debt to gross domestic product ratio by around 20% points by 2060. European Stability Mechanism (ESM) President Klaus Regling said, the implementation of the measures would take a while, but the fund would start the process in the coming weeks.

Euro recovered at the end of yesterday’s trading session as traders were fretted with Matteo Renzi's resignation which could lead to more political instability and increase concerns about the fragility of the country’s financial system.  However, Euro settled at 1.08, thanks to the news announced about financial assistance to Greece.

U.S. services companies expanded in November at their fastest rate in more than a year, increasing expectations that the Federal Reserve will hike interest rates next week.

The index touched 57.2, the highest level since October 2015. Anything above 50, signals growth in the economy.  The U.S. dollar index fell to 100 pips.

Gold declined more than 1% yesterday as the single currency fell against the Greenback as traders shrugged off worries of political uncertainty in Italy.

Gold pared its losses and settled at the support level of $1,170 at the end of yesterday’s trading session. Technically, it could trade sideways during the day.

Brent crude oil settled above $55 a barrel yesterday, trading at a 16-month high, as optimism spread about the prospect of a tightening market supply after members of the Organization of the Petroleum Exporting Countries agreed on a landmark deal to cut production last week. U.S. crude settled at $51 after touching $52.40.

The most important economic events:

• USD Factory Orders (OCT): (GMT: 17:00) - Medium – Forecast (1.9%) – Previous (0.3%).

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.