Markets await ECB President Draghi’s speech

USD

On Monday, the Greenback traded lower to start the week on Monday, giving back some of the previous week’s gains as traders grew more cautious ahead of Federal Reserve Chairman Jerome Powell's first congressional testimony on monetary policy and the economy due later this week. On the release front, traders are awaiting the U.S. New Home Sales for Jaunary, which is expected to hit 3.4% from -9.3%.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.36% at 89.49, off last Thursday's one-and-a-half week high of 90.17.

EUR

The single currency rose as much as 0.37%, to settle at $1.2349, but gains were held in check as traders remained cautious ahead of the Italian general election due in March 4. On the release front, traders are awaiting the ECB President Draghi’s speech.

GBP

The Sterling pound rose by 0.60%, to settle at 1.4059, positively affected by a weak USD.

JPY

Against the JPY, the USD fell by 0.19%, to settle at ¥106.59. No major reports are due from the Japan today.

Gold

Gold prices settled high, after declining more than 1% last week, as the Greenback declined following recent gains as market players remained cautious ahead of new Federal Reserve head Jerome Powell's testimony due later this week. Gold Futures - Apr 18 (GCJ8), rose by 0.87%, to settle at $1,341.90.

Oil

Crude oil prices fell slightly after trading near two-week highs, backed by news Saudi Arabia plans to continue cutting output levels. Oil prices settled high after Saudi oil said over the weekend that the country's oil production in January-March would be well below output caps, with an average export rate below of 7 million barrels per day. Crude Oil WTI Futures - Mar 18 (CLH8) fell as much as 0.09%, to settle at $63.49, and Brent Oil Futures - Apr 18 (LCOJ8) was down by 0.10% at $66.97.

The most important economic events:

• EUR ECB President Draghi speaks in Brussels: (GMT 14:00) – Important
• USD New Home Sales (MoM) (JAN): (GMT 14:00) – Important – Medium – Forecast (3.4%) – Previous (-9.3%).

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.