Dollar Recovers And Oil Settles High

USD

On Tuesday, the Greenback settled high vs. a basket of major currencies after a three day U.S. government shutdown ended, while the yen fell slightly after the head of the BOJ repeated his support for monetary easing.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up by 0.14% at 90.28, not far off its three-year low of 89.96 set on Friday.

EUR

The Single currency fell by 0.16% vs. the USD, to settle at $1.2242. Looking to the week ahead, market players will focus on the European Central Bank’s meeting on Thursday, which could provide insight into future shifts in monetary policy. On the release front, traders are awaiting German ZEW Survey Expectations for January, which is expected to hit 17.7 from 17.4.

GBP

The Sterling pound fell by 0.24%, to settle at $1.3952. on the release front, markets are awaiting The Confederation of British Industry (CBI) Trends Total Orders, which are expected to hit 12 from 17.

JPY

The Bank of Japan went with expectations and held monetary policy unchanged but made tweaks to its views on inflation. The USD rose slightly by 0.14%, to settle at ¥111.06.

Gold

Earlier today, Gold prices rose with a government shutdown in the US ended for at least three weeks after the U.S. President signed a continuing funding resolution to end government shutdown. Gold Futures - Feb 18 (GCG8), rose by 0.35%, to settle at $1,336.50.

Oil

Early on Tuesday, Oil prices settled high, backed by healthy economic growth as well as the ongoing supply curd by OPEC and Russia. Crude Oil WTI Futures - Feb 18 (CLG8) rose as much as 0.72%, to settle at $64.03 and Brent Oil Futures - Mar 18 (LCOH8) was up by 0.64% at $69.47.

The most important economic events

• EUR German ZEW Survey Expectations (JAN): (GMT 10:00) – Important – Forecast (17.7) – Previous (17.4).
• EUR Euro-Zone ZEW Survey (Economic Sentiment) (JAN): (GMT 10:00) – Important – Forecast (N/A) – Previous (29).
• USD Senate Holds Confirmation Hearing for Fed Nominee Goodfriend: (GMT 10:00) – Medium

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.