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The US Dollar is Under Pressure

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The USD was affected by Chicago Federal President Charles Evans’s statement, as he said yesterday that the Fed is reluctant to go ahead with more interest rate hikes due to increased global risks.

The dollar fell against a basket of major currencies at the end of March, its worst quarterly performance in five years. The greenback was negatively affected by interest rates and could decline further below 95 during the coming period.  

Euro extended its gains against the greenback to trade at $1.1370, backed by weak U.S. data. The single currency was negatively affected by the statements of German Bundesbank President Jens Weidmann, as he warned of the economic effect of Britain exiting the EU, pointing to the advantages of competition and free trade.

The pound failed to settle above $1.44, negatively affected by Brexit Campaign. Investors will turn their attention to a speech from BOE Governor Mark Carney, later today. Mr Carney could mention the 'Brexit' risks serious side effects for GBP, on the other hand, the pound could decline further to $1.43 and $1.42.

USD pared its losses against JPY to settle at 112.40 levels. The Greenback will remain under pressure until the disclosure of the jobs data on Friday.

Gold declined to $1,225, as traders remain cautious ahead of the release of the jobs data. The precious metal seems on its way to record its best quarterly performance in almost 30 years. It rose 16.4% after prices rallied strongly earlier in the year.

Oil prices increased gains during yesterday’s trading session, positively affected by the EIA inventory report. 

The most important economic events:

  • EUR German Unemployment Change (MAR): (GMT 09:55) – Important – Forecast (-6k) – Previous (-10k).
  • EUR German Unemployment Rate s.a. (MAR): (GMT 09:55) – Important – Forecast (6.2%) – Previous (6.2%).
  • EUR Euro-Zone Consumer Price Index Estimate (YoY) (MAR): (GMT 11:00) – Important – Forecast (-0.1%) – Previous (-0.2%).
  • EUR Euro-Zone Consumer Price Index - Core (YoY) (MAR A): (GMT 11:00) – Important – Forecast (0.9%) – Previous (0.8%).
  • CAD Gross Domestic Product (MoM) (JAN): (GMT 14:30) – Important – Forecast (0.3%) – Previous (0.2%)

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.

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