USD Falls and Markets Await Eurozone Inflation

USD

On Tuesday, the Greenback moved lower vs. a basket of major currencies for the fourth consecutive session, amid doubts that the Federal Reserve will hike interest rates next month in light of recent reports and due to the softer-than-expected U.S. data, which released last Friday

• The dollar index (DXY), which measures the greenback against a basket of currencies, fell to 98, due to lack of the U.S. economic data.

EUR

Euro edged higher vs. USD and settled at $1.11 as German ZEW economic sentiment indicator rose to 20.6 in May from April's reading of 19.5. Today, the common currency is awaiting the Eurozone Inflation Rate, which has cut its purchases by 20 billion euros to 60 billion euros. Technically, a lower than expected reading could bush the pair to re-test $1.10, while a higher than expected reading that should be taken as bullish for the EUR and could re-test $1.12.

GBP

The Sterling pound pared its losses vs. the Greenback and settled above $1.29 as UK inflation jumped to the highest level since 2013. Technically, Cable is likely to re-test $1.30, in anticipation of GBP Jobless Claims. 

Gold

Gold rose for the fourth day in a row, as the dollar fell amid political uncertainty and on signs of slower economic activity in the U.S.

Oil

However, Kuwait has joined Russia and Saudi Arabia in supporting an extension of the oil-output cut deal, Oil prices failed to settle high yesterday. U.S. crude fell to 48.40, in anticipation of the U.S. oil inventories, which could decline as much as 2.3 million barrels.

The most important economic events:

• EUR Euro-Zone Consumer Price Index (MoM) (APR): (GMT: 09:00) – Medium – Forecast (0.4%) – Previous(0.8%).
• JPY Gross Domestic Product Annualized (1Q P): (GMT: 23:50) – Important – Forecast (1.8%) – Previous(1.2%).

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.