Dollar Steadies As Trade War Worries Recede

USD

On Tuesday, the Greenback fell slightly vs. a basket of major currencies, backed by receding worries over a trade war stemming from U.S. President Donald Trump's proposed tariffs on imported aluminum and steel. On the release front, traders are awaiting the U.S. factory orders for January, which is expected to hit -1.3%, from 1.7%.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.03% at 89.93.

EUR

The Single currency rose slightly by 0.05%, to settle at $1.2342, recovering from a brief selloff yesterday, after Italy's election outcome pointed to stronger-than-expected showing for euro-sceptic parties, with no major part.

GBP

The Sterling pound rose as much as 0.01%, to settle at $1.3851. No major reports are due from the UK today.

JPY

Against the JPY, the USD fell by 0.28%, to settle at ¥105.91. The safe haven yen was little changed after the BOJ Governor Haruhiko Kuroda said there were downside risks to the central bank’s projection that inflation would reach its 2% target by fiscal year 2020.

Gold

Early on Tuesday, gold prices settled higher; as sentiment on the U.S. dollar remained unstable due to uncertainty surrounding U.S. tariffs on aluminum and steel imports as well as the Italian elections. Gold Futures - Apr 18 (GCJ8), rose by 0.32%, to settle at $1,324.10.

Oil

Oil futures edged higher for a third session in a row, backed by robust demand forecasts and as ministers from OPEC touted the strength of its agreement to support prices by cutting output. Crude Oil WTI Futures - Crude Oil WTI Futures - Apr 18 (CLJ8) fell as much as 0.08%, to settle at $62.52, and Brent Oil Futures - May 18 (LCOK8) was down by 0.23% at $65.39.

The most important economic events:

• USD Factory Orders (JAN): (GMT 15:00) – Medium – Forecast (-1.3%) – Previous (1.7%).
• USD Durable Goods Orders (JAN F): (GMT 15:00) – Medium – Forecast (-3.5%) – Previous (-3.7%).

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.