Eyes on US Tax Vote

USD

On Thursday, the Greenback rose slightly vs. a basket of the other major currencies as traders are awaiting an expected vote on the U.S. tax code later in the day. However, market players remained cautious as uncertainty over the fate of a major U.S. tax reform continued to affect financial markets.

Data on Wednesday showed that the annual core inflation rose to 1.8% in October after having stayed at 1.7% in the preceding five months and Retail sales increased 0.2%.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.14% at 93.944 pips.

EUR

The single currency fell vs. the U.S. dollar, with EUR/USD last at $1.1775, down by %0.14, off Wednesday’s one-month highs of $1.1859.

GBP

The Sterling pound edged up by 0.02% at $1.3174, as the Retail sales in the UK rose more than expected in October, supporting optimism over the UK economy.

JPY

Against the JPY, the Greenback rose as much as 0.30%, to settle at ¥113.22. No reports are due from Japan today. 

Gold

Earlier today, Gold fell slightly as traders are focusing on U.S. tax reform developments ahead of a vote in Congress later in the day. Additionally, the precious metal negatively affected as the U.S. economic data strengthened the possibility of the Federal Reserve raising interest rates before the end of the year.  Gold Futures - Dec 17 (GCZ7) was down by 0.01% at $1,277.63.

Oil

Oil markets rose amid anticipations that OPEC could extend production cuts at a meeting at the end of this month outweighed rising U.S. crude production and inventories.

Crude Oil WTI Futures - Dec 17 (CLZ7) rose as much as 0.07% at $55.37 and Brent Oil Futures - Jan 18 (LCOF8) was up by 0.16% at $61.97.

Economic Calendar (all times in GMT)

• GBP BOE's Carney, Broadbent, Cunliffe, Place, Ramsden, Woods Speak: (GMT 14:00) – Important
• USD Manufacturing (SIC) Production (OCT): (GMT 14:15) – Medium – Forecast (0.6%) – Previous (0.1%).

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.