Euro Hits Two Month Highs Vs. The US Dollar

USD

On Monday, the Greenback fell to a two-month low vs. the Euro, negatively affected by strong German business confidence. The German business confidence index compiled by the Ifo economic institute unexpectedly advanced to a record high level of 117.5 in November, in another sign of strong growth in the euro zone's largest economy. The U.S. new home sales data for October, due to release later in the day

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.13% at 92.568 pips, pressured lower by the stronger euro.

EUR

The single currency rose as much as 0.06% vs. the Greenback, with EUR/USD at $1.1939. The EUR got further support, on the back of news that Germany’s Social Democrats’ agreed to hold talks with Chancellor Angela Merkel in a bid to form a new coalition government. On the release front, traders are awaiting Italy’s consumer confidence index for November.

GBP

The Sterling pound rose inched up by 0.11% vs. the Greenback, to settle at $1.3347, not far from Friday’s two-month highs of 1.3358.

JPY

The JOY traded high against the USD with USD/JPY at ¥111.28, down by 0.22%.

Gold

Gold prices edged high as the U.S. dollar settled close to a two-month low touched in the previous session, with traders noting the US Federal Reserve’s cautious view of inflation. Gold Futures - Dec 17 (GCZ7) rose by 0.31%, to settle at $1,291.28.

Oil

Oil prices declined, with U.S. crude easing from two-year highs on the prospect of increased output; although global markets were little better backed by anticipations an OPEC-led production cut would be extended into 2018.

Crude Oil WTI Futures - Jan 18 (CLF8) fell as much as 0.87% at $58.44 and Brent Oil Futures - Jan 18 (LCOF8) was up by 0.28 % at $63.65

The most important economic events:

• USD New Home Sales (MoM) (OCT): (GMT 15:00) – Medium- Forecast (-6.3%) – Previous (18.9%).

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