Oil Hits Highest Since 2015

USD

On Tuesday, the Greenback settled high vs. a basket of major currencies, supported by anticipations for upcoming rate hikes by the U.S. Federal Reserve.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up by 0.22% at 92.28 pips.

EUR

The common currency fell by 0.27% vs. the U.S. dollar and settle at $1.1936, negatively affected by the Strong USD. On the release front, the Euro-Zone Unemployment Rate (NOV), declined to near 9-year low at 8.7% vs. 8.7% expected.

GBP

The Sterling pound fell as much as 0.29%, to settle at $1.3529. yesterday, the U.K. Prime Minister Theresa May named a new head of her ruling Conservatives, among other changes aimed at handing her government a new start after months of divisions over Brexit, which have all weighed on the pound.

JPY

The yen edged higher after the BOJ trimmed the size of its bond purchases, raising speculation that it could slow its monetary stimulus later this year. Against the JPY, the USD fell as much as 0.19%, to settle at ¥112.91.

Gold

Gold prices edged down, falling further from last week’s three-and-a-half month highs as the Greenback boosted against the single currency and as traders continued to bet on further rate rises by the Federal Reserve this year. Gold Futures - Feb 18 (GCG8), fell as much as 0.38%, to settle at $1,315.40.

Oil

Oil prices settled high near multi-year highs, still supported by a decline in U.S. oil rigs and supply cuts by OPEC and Russia. Crude Oil WTI Futures - Feb 18 (CLG8) rose as much at 0.24% at $61.88 and Brent Oil Futures - Mar 18 (LCOH8) was up by 0.04% as $67.81.

The most important economic events:

• EUR Euro-Zone Unemployment Rate (NOV): (GMT 10:00) – Medium – Forecast (8.7%) – Previous (8.8%).
• USD NFIB Small Business Optimism (DEC): (GMT 10:00) – Medium – Forecast (108) – Previous (107.5%).

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.