GBP Down and Dollar awaits Federal Reserve’s Meeting Policy

USD

On Tuesday, the Greenback rose slightly vs. its major peers, as investors are awaiting the minutes of the Federal Reserve’s meeting policy on Wednesday, for fresh indications on the future pace of interest rate hikes. In terms of data, U.S. home appliance shipments index for February up 9.7% year on year.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up by 0.15% at 89.61.

EUR

The Single currency fell by 0.20%, to settle at $1.2311, negatively affected by a strong USD. Meanwhile, the EUR was supported yesterday amid expectations that the European Central Bank policymakers are shifting the focus of their discussions from bond purchases to the future path of interest rates. In terms of data, German ZEW Economic Sentiment Index declined to 5.1 this month from 17.8 in February.

GBP

The Sterling pound failed to stand tall vs. the USD as the UK Inflation index for February fell to its lowest level since July with GBP/USD at $1.4026, down from around 1.4054 ahead of the data.

Gold

Earlier today, Gold prices declined, as market players are awaiting the Federal Reserve policy meeting this week for further clues on the outlook for interest rates. The Fed is widely expected to hike rates by a 0.25 point, which could be the first rate hike of 2018. Gold Futures - Apr 18 (GCJ8), fell by 0.38%, to settle at $1,312.80.

Oil

Early on Tuesday, Oil prices edged up, boosted by a weak USD, concerns over a further decline in Venezuelan oil production and continued tensions in the Middle East. However, gains looked likely to remain limited amid surging U.S. oil production and shaky financial stock markets. On the release front, traders are awaiting the American Petroleum Institute's weekly report on U.S. oil supplies, due later in the day. Crude Oil WTI Futures - Crude Oil WTI Futures - Apr 18 (CLJ8) rose as much as 0.92%, to settle at $62.70, and Brent Oil Futures - May 18 (LCOK8) was up by 0.59% at $66.44.

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.