While Dollar Settles, Euro is under Pressure

USD
The Greenback lost some of its momentum yesterday as US interest rate hopes tumbled and as the U.S. economy is growing slowly.

• The U.S. dollar index (DXY) failed to maintain its gains and declined to 100.34 pips.

EUR
Euro settled at its lowest levels in three weeks on concerns over the EU’s political outlook as France’s presidential election could determine the future of the European Union. However, the common market boosted as the Eurozone unemployment rate fell to 9.5% for February. Euro is hovering around $1.0670 vs. USD. Euro is eagerly awaiting the results of France's presidential election.

GBP
GBP declined to $1.2450 vs. USD as British manufacturing purchasing managers' index (PMI) fell to a seasonally adjusted 54.2 last month; however, markets had expected a rise to 55.1.

Gold
Gold pared its losses yesterday and settled at $1,253 amid uncertainty over the EU’s political outlook. Technically, the precious metal could hover around $1,245 in anticipation of FOMC minutes.

Oil
Oil prices back to declines as Libyan oil production resumed. U.S. crude fell to $50 in anticipation of the U.S. inventories data, which will be released tomorrow.

The most important economic events:

• EUR ECB President Draghi speaks in Frankfurt: (GMT 13:30) – Important

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.