Dollar Falls Sharply Amid Trump’s Political Turmoil

USD

On Wednesday, the U.S. dollar fell as much as 1% vs. a basket of major currencies amid political uncertainty that surrounded the Trump administration, especially following reports that stated he had asked former FBI Director James Comey to shut down an investigation into Michael Flynn. Concerns as such are measured to be promoting traders to shift to safe-haven.

• The dollar index (DXY), which measures the greenback against a basket of currencies, fell to 97.40, the lowest level since Donald Trump's victory on 9^th

Euro

Euro rose vs. USD and settled at $1.1150, while Eurozone matched expectations. Technically, the common currency could touch $1.12 during the day, in anticipation of the Philadelphia Fed Manufacturing Index.

Gold

Gold prices rose as much as 2% yesterday and were traded at $1,260, with investors going to safe-haven due to U.S. political turmoil. Technically, the yellow metal could hit new highs amid Trump’s political turmoil.

GBP

The Sterling pound boosted vs. USD and traded near $1.30, the highest level for more than 8-months, as Trump warriors have increased. Meanwhile, Cable is awaiting the UK retail sales.

Oil

Oil prices pared some of its losses as U.S. Oil inventories declined by 1.8 million barrels for the week until May 12. In addition, U.S. crude rose to $48.60, amid fresh hopes that OPEC could extend production cut deal.

The most important economic events:

• USD Philadelphia Fed. (MAY): (GMT 17:00) – Medium- Forecast (18.5) – Previous (22).
• EUR ECB's Draghi Speaks in Tel Aviv: (GMT 17:00) – 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.