Dollar Holds Steady

USD

On Tuesday, the Greenback held steady near two-week highs vs. a basket of other major currencies as speculation over Donald Trump’s nomination to lead the world's most important central bank continued. The U.S. dollar was boosted yesterday due to expectations for U.S tax reforms specially after President Trump’s statement on Sunday saying that that he is optimistic that the Congress would pass a tax plan he could sign by the end of the year.

• The U.S. dollar index, which measures the U.S. Dollar’s strength against a trade-weighted basket of six major currencies fell as much 0.3%, to settle at 93.69 pips.

EUR

The single currency recovered vs. the U.S. dollar with EUR/USD rising 0.13% to $1.1764.

On the release front, data showed that euro zone private sector activity continued to expand steadily in October. Market manufacturing purchasing managers’ index came in at 58.6 in October from 58.1 in September.

JPY

The JPY fell as much as 0.16% vs. the Greenback to settle at ¥113.63.  The U.S. dollar traded near three-month high yesterday after Japanese Prime Minister Shinzo Abe scored major victory in national elections.

GBP

The Sterling pound traded lower at $1.3197 after the BoE Deputy Governor Sir Jon Cunliffe warned that with Britain's economy suffering weak growth it is an “open question” whether the bank will raise borrowing costs in November.

Gold

Gold prices traded near to two-week low yesterday before paring losses. The yellow metal was under pressure from expectations that Japan's ultra-loose monetary policy would stay in place after Prime Minister Shinzo Abe's election victory at the weekend lifted the U.S. dollar to a three-month high versus the yen.

Gold Futures - Dec 17 (GCZ7) fell as much as 0.10% to $ 1,279.56.

Oil

Earlier today, oil prices edged higher due to a decline in oil exports from OPEC's second-biggest producer Iraq and a projected extended decline in U.S. commercial oil inventories. U.S. crude inventories declined by 2.5 million barrels last week, while gasoline and distillate stockpiles also fell.

Crude Oil WTI Futures - Dec 17 fell as much as 0.8%, to settle at $51.84, while Brent Oil Futures - Dec 17 was down 0.19% at 57.26.

Economic Calendar (all times in GMT)

• GBP UK Chancellor Hammond Answers Questions in Parliament: (GMT 10:30) – 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.