Dollar Recovers but Gains Limited by Concerns

USD

On Monday, the Greenback traded higher vs. a basket of major currencies, but gains were limited by doubts over the Trump administration’s commitment at Davos 2018 business. The USD settled high after President Donald Trump said Thursday the U.S. currency would get “stronger,” appearing to contradict Mnuchin’s statement. On the release front, markets are awaiting the U.S.  Core PCE price Index, which is expected to hit 1.5%.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up by 0.18% at 89.03, extending its bonus from a three-year low of 88.25 set last Thursday.

EUR

The Single currency fell by 0.12% vs. the Greenback, to settle at $1.2412, down from the more than three year peaks of 1.2537 touched last Thursday. No major reports are due the Euro-zone today.

GBP

The Sterling pound declined by 0.33%, to settle at $1.4113.

JPY

Against the JPY, the USD rose by 0.10%, to settle at ¥1.4113, after touching a low of ¥108.28 yen on Friday, its lowest level since mid-September.

Gold

Early on Monday, Gold prices inched lower, pulling back from a 17-month high as the Greenback recovered slightly from last week's turbulence, backed by conflicting statements from the Trump administration at Davos 2018 business. Gold Futures - Feb 18 (GCG8), fell by 0.53%, to settle at $1,344.90.

Oil

Earlier today, oil prices declined as soaring North American production was seen weakening efforts led by OPEC and non-OPEC oil giant Russia  to cut supplies.

Crude Oil WTI Futures - Feb 18 (CLG8) rose as much as 0.12%, to settle at $66.22, and Brent Oil Futures - Mar 18 (LCOH8) was down by 0.36% at $69.90.

The most important economic events

• USD PCE Core (YoY) (DEC): (GMT 13:30) – Important – Forecast (1.5%) – Previous (1.5%).
• USD Dallas Fed Manufacturing Activity (JAN): (GMT 13:30) – Medium – Forecast (25.5) – Previous (29.7).

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.