Dollar Falls Despite Upbeat Data
Dollar Falls Despite Upbeat Data
On Thursday, the Greenback fell vs. a basket of major currencies for the second day in a row. However, the Philadelphia Manufacturing Index rose in February to 43.3 from 23.6 in January, the highest in 33-year’s.
The U.S. dollar declined amid uncertainty over the U.S. economic policy under the new Trump administration. In addition, Treasury yields fell yesterday, as the financial markets are looking for opportunities to assess the interest rate hikes next month. The U.S. and EU’s political uncertainty could lead traders to safe-haven assets.
The U.S. dollar index fell as much as 0.5% yesterday and settled at 100.45 pips.
Gold
Gold held strong near its highest level in a week and settled at $1,241. Technically, touching $1,245 could push the yellow metal to hit new highs.
JPY
Yen rose yesterday vs. USD and settled at ¥113, amid concerns over the U.S. foreign policy under Donald Trump, as he said, Iran is the "number one terrorist state,” and the United States will work with Tehran from the position of sanctions. The U.S. political uncertainty could push traders to safe-haven currencies such as Yen.
Oil
Oil prices ended modestly higher yesterday, as OPEC and non-members may consider extending their oil supply-cut deal if global crude inventories failed to decline to the targeted levels. U.S. crude rose to $53.40, boosted by a weak U.S. dollar. Technically, it could touch $53.50 by today.
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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