The U.S. Dollar Falls Again

USD
On Thursday, the Greenback fell for the second day in a row as the minutes of the Fed's last policy meeting showed officials confident they can hike rates gradually amid little threat that near-term inflation will accelerate. The U.S. dollar index traded below 101 pips and could hover around such levels.

Gold
Gold prices settled above $1,250, amid weakening hopes of a March interest rate hike and as weekly jobless claims rose slightly more than expected. Technically, the yellow metal could hit support of $1,244 by today, due to U.S. and EU’s political outlook.

JPY
USD fell vs. JPY and settled at ¥112.50 amid uncertainty over U.S. policy. Technically, the Greenback is unlikely to hit ¥113 during today.

EUR
Euro settled at $1.0570 vs. USD as European Central Bank chief economist Peter Praet said Europe’s economic recovery remains fragile, leaving little room for complacency, with risks exacerbated by political uncertainty before key elections. Technically, the common currency could trade sideways during the day and hit $1.06.

Oil
Also on Tuesday, WTI hit $55 as data showed a decline in U.S. crude oil inventories. However, U.S. crude failed to maintain its gain and settled at $54 at the end of yesterday’s trading session. Technically, it could touch $54.50 by today.

The most important economic events:

• CAD Consumer Price Index (YoY) (JAN): (GMT: 15:300) – Important – Forecast (1.6%) – Previous (1.5%).

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.