Dollar Trades Under Pressure Despite Trump's Comments

USD

On Friday, the Greenback settled above its recent lows vs. its major peers, having supported after U.S. President Donald Trump said he wanted a "strong dollar", contradicting earlier statements made by Treasury Secretary Steven Mnuchin. On the release front, traders are awaiting the U.S. Goods Trade Balance, which is expected to hit -$68.9b from -$70.0b.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.56% at 88.69.

EUR

The EUR rose by 0.49% vs. the USD, to settle at $1.2458, thanks to weak U.S. dollar, despite U.S. President Donald Trump backing a stronger dollar. Meanwhile, traders doubted whether Trump's statements could be enough to change the recent trend of dollar declines. Additionally, the common currency had touched that peak after ECB President Mario Draghi said economic data pointed to "solid and broad" growth with inflation likely to rise in the medium term.

GBP

The Sterling pound rose by 0.84%, to settle at $1.4258, thanks to soft dollar. On the release front, traders are awaiting the UK Gross Domestic Product, which is expected to hit 1.4% from 1.7%.

JPY

Against the JPY, the USD fell by 0.32% to settle at ¥109.06.

Gold

Gold prices declined after the U.S. President Donald Trump said he backed a "strong dollar". Gold Futures - Feb 18 (GCG8), fell by 0.75%, to settle at $1,352.70.

Oil

Early on Friday, Oil prices fell slightly as ongoing weakness in the Greenback was seen supporting fuel consumption. Crude Oil WTI Futures - Feb 18 (CLG8) rose as much as 0.06%, to settle at $65.55 and Brent Oil Futures - Mar 18 (LCOH8) was down by 0.01% at $70.41.

The most important economic events:

• GBP Gross Domestic Product (YoY) (4Q A): (GMT 09:30) – Important – Forecast (1.4%) – Previous (1.7%). 
• CAD Consumer Price Index (YoY) (DEC): (GMT 13:30) – Important – Forecast (1.9%) – Previous (2.1%).
• USD Advance Goods Trade Balance (DEC): (GMT 13:30) – Important – Forecast (-$68.9b) – Previous (-$70.0b).

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.