Dollar Settles High And Awaits Nonfarm Payrolls

USD

On Thursday, the Greenback settled high vs. a basket of major currencies, after the Federal Reserve said inflation was likely to rise this year. At Fed Chair Janet Yellen's last policy meeting as head of the central bank, the Fed. kept interest rates unchanged, but hinted at hikes this year. Now, market players are Friday's nonfarm payrolls report for further indications of the strength of the economy. On the release front, traders are awaiting the U.S. ISM Manufacturing, which is expected to hit 58.6 from 59.7.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.13% at 88.83

EUR

The Single currency fell by 0.25%, to settle at $1.2444, having pulled away from a high of $1.2475 reached the previous day. On the release front, markets are awaiting
EUR ECB's Praet Speaks in Brussels.

GBP

The Sterling pound fell by 0.50%, to settle $1.4261 as the U.K Manufacturing activity UK unexpectedly declined at the start of 2018.

JPY

Against the JPY, the USD rose by 0.43%, to settle at ¥109.66.

Gold

Gold prices fell slightly, after the Federal Reserve wend with expectations and kept interest rates unchanged but hinted at hikes later this year. It is widely expected  that the U.S. Fed reserve will hike rates next month, followed by another hike in June, with a third move higher arriving before the end of the year. Gold Futures - Feb 18 (GCG8), rose by 0.07%, to settle at $1,344.00.

Oil

Early on Thursday, the U.S. oil prices extended its gains as data earlier showed a sizable decline in U.S. stocks of gasoline and distillate supplies and as OPEC's strong compliance with a supply cut deal offset news that U.S. production topped 10 million barrels per day for the first time in nearly half a century. Crude Oil WTI Futures - Feb 18 (CLG8) rose as much as 0.63%, to settle at $ 65.14, and Brent Oil Futures - Mar 18 (LCOH8) was up by 0.68% at $69.36.

The most important economic events

• USD ISM Manufacturing (JAN): (GMT 15:00) – Important – Forecast (58.6) – Previous (59.7).
• USD ISM Employment (JAN): (GMT 15:00) – Important – Forecast (N/A) – Previous (57).

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.