The U.S. Dollar Declines Due To Political Worries

USD
On Friday, the Greenback edged lower vs. a basket of major currencies, but losses were expected to remain limited after the House of Representatives passed an important U.S. tax reform bill. Additionally, The U.S. dollar also traded under pressure after the U.S. Department of Labor reported yesterday that initial jobless claims increased unexpectedly to 249k for the week ended Nov. 11.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.31% at 93.645pips.

EUR
The single currencies edged up by 0.14%, to settle at $1.1787, thanks to weak U.S. dollar. On the economic calendar for Friday, markets are awaiting ECB's Draghi Speaks in Frankfurt.

GBP
The Sterling pound rose by 0.30% vs. the USD, as the UK retail sales continued to grow in October, easing some of the worries of a plunge in consumer spending.

JPY
The JPY rose by 0.39% vs. the Greenback with USD/JPY at ¥ 112.62, as traders turned to the safe-haven currency amid a slight increase in risk appetite over the potential impact of U.S. tax cuts as plans passed the House of Representatives and a key U.S. Senate committee.

Gold
Gold prices rose for a second straight weekly gain as U.S. tax cuts move closer to passage, however, trading remained in a narrow range amid anticipations of a U.S. interest rate raise in December. Gold Futures - Dec 17 (GCZ7) rose as much as 0.30% at $1,282.05.

Oil
Earlier today, Oil prices traded high after recent declines amid pressure from increasing U.S. supplies and worries over Russian support for continuing a cut in crude output.

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.

The most important economic events:

• EUR ECB's Draghi Speaks in Frankfurt: (GMT 08:30) – Important
• CAD Consumer Price Index (YoY) (OCT): (GMT 08:30) – Important – Forecast (1.4%) – Previous (1.6%).

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.