Purchases of previously owned U.S. homes rose more than expected in March, indicating an improvement in the housing market. USD index touched levels of 94.50 at the end of Wednesday’s trading session.
Euro declined vs. Dollar on fears that comments from the ECB could negatively affect the euro. Euro traded below $1.13 ahead of the ECB meeting later on today. The European Central Bank is unlikely to offer any major policy changes at its meeting therefor, the Euro could decline further to $1.12.
GBP declined vs. dollar and traded around $1.43 as UK unemployment total rose 21,000 to 1.7 million between December and February and the unemployment rate remained at 5.1%. On the other hand, the greenback awaits an important release later on today.
USD rose vs. JPY and touched the psychological level of 110 as the BOJ could intervene to curb the yen's gains. From a technical point of view, levels of 110 could represent the resistance levels and may push USD to retreat a bit.
Gold traded in a narrow range and settled at $1,245. Investors turn their attention to the U.S markets as it could move further today and the yellow metal could be affected as well. From a technical point of view, Gold could move further to $1,260.
WTI traded above $44.20, the highest level for the year, thanks to U.S data as U.S. commercial crude inventories increased by 2.1 million barrels.
The most important economic events:
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.