Dollar Recovers and Euro Falls

USD
On Tuesday, Greenback rose slightly vs. a basket of major currencies as the euro fell slightly after having rallied to a more than three year highs amid talk that the European Central Bank may cut its monetary stimulus.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up by 0.34% at 90.44 pips, off Monday's three-year low of 90.05.

EUR
The Single currency fell by 0.47%, to settle at $1.2210, after hitting its highs of 1.2296, which was the strongest level since December 2014.

GBP
The Sterling pound fell by 0.30%, to settle at $1.3750, as the UK inflation declined in December for the first time in six months, meaning that Britain’s cost of living squeeze eased.

JPY
Against the yen, the USD rose by 0.18%, to settle at ¥110.73. on the release front, traders are awaiting Japanese Machinery Orders, which is expected to hit -0.5% from 2.3%.

Gold
Gold prices settled near 4-month highs, as the Greenback declined to 3-year lows. The precious metal did not settle yesterday due to the U.S. Martin Luther King Day holiday.Gold Futures - Feb 18 (GCG8), rose slightly by 0.05%, to settle at $1,335.60.

Oil
Earlier today, Brent oil prices failed to maintain its gains and edged lower, but held near their highest level since late 2014, due to optimism over recent efforts by OPEN and major producers to cut output to reduce a global glut and support oil prices. Crude Oil WTI Futures - Feb 18 (CLG8) rose as much as 0.14% as $64.39 and Brent Oil Futures - Mar 18 (LCOH8) was down by 0.54% at $ 69.88.

The most important economic events:

• CHF SNB President Jordan Speaks in Zurich: (GMT 17:00) – Important.
• JPY Machine Orders (YoY) (NOV): (GMT 23:50) – Medium – Forecast (-0.5%) – Previous (2.3%).

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.