Greenback Stands Tall
Greenback Stands Tall
The U.S. dollar jumped to a near 14-year peak backed by expectations of fiscal stimulus from U.S. President-elect Donald Trump and a faster pace of interest rate hikes. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of major currencies, touched 103.
Gold prices have edged higher at the beginning of yesterday’s trading session as geopolitical tensions offset anticipation of tighter U.S. monetary policy and a stronger USD. The precious metal was affected by deadly incidents in Germany and Turkey. In addition to this, the Russian ambassador to Turkey was shot in the back and killed as he gave a speech at an Ankara art gallery yesterday.
The precious metal settled above $1,140 and could trade in a limited range due to Christmas and New Year holidays.
Also on Tuesday, the Bank of Japan (BOJ) kept policies unchanged due to the conclusion of its two-day policy meeting, as widely anticipated.
GBP failed to settle above $1.24, negatively affected by a strong USD. Technically, Cable could trade in a limited range due to the upcoming Christmas and New Year holiday.
Euro declined to $1.04, negatively affected by a strong USD and could decline further during the coming period.
Oil prices traded flat yesterday, as the market is awaiting the outcome of the output cuts deal by OPEC, Russia and other producers. WTI settled at $53.
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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