Dollar Falls on U.S. Political Uncertainty

USD

On Friday, The U.S. dollar inched lower vs. a basket of major currencies, moving away from a one-week high after the Washington Post reported yesterday that the U.S. President Donald Trump has decided to replace his national security adviser, H.R. McMaster, increasing fresh worries over U.S. political turmoil. Additionally, the Greenback weighed down by concerns over U.S. political, after news that U.S. President Donald Trump is seeking to impose tariffs of up to $60 billion of Chinese imports. On the release front, the university of Michigan consumer sentiment index, which is expected to hit 99.3 from 99.7.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.18% at 89.98, off a one-week high of 90.17 hit overnight.

EUR

The Single currency rose by 0.23%, to settle at $1.2333, thanks to a weak USD.

JPY

Against the JPY, the Greenback fell by 0.64%, to settle at ¥105.67, as traders turned to safest currencies due to concerns over trade wars.

Gold

Gold prices rose slightly, as fresh U.S. political worries weighed on the Greenback. The U.S. dollar declined after the Washington Post reported yesterday that U.S. President Donald Trump has decided to replace his national security adviser, H.R. McMaster. Gold Futures - Apr 18 (GCJ8), rose slightly by 0.05%, to settle at $1,318.50.

Oil

Early on Friday, oil prices rose slightly, as ongoing concerns over a rapid rise in U.S. crude production threatening to weaken efforts by OPEC and non-OPEC oil major producers. In terms of data, the International Energy Agency (IEA) reported yesterday that the global oil supply increased in February by 700k barrels per day (bpd) from a year ago to 97.9 million bpd. Crude Oil WTI Futures - Crude Oil WTI Futures - Apr 18 (CLJ8) rose as much as 0.05%, to settle at $61.22, and Brent Oil Futures - May 18 (LCOK8) was down by 0.06% at $65.08.

The most important economic events:

• USD U. of Mich. Sentiment (Mar P): (GMT 14:00) – Important – Forecast (99.3) – Previous (99.7).
• USD Baker Hughes U.S. Rig Count (Mar 16): (GMT 14:00) – Important – Forecast (N/A) – Previous (984).

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.