On Monday, USD declined to its lowest level in more than 5 months against a basket of currencies. The Greenback decline was affected by Yellen’s comments on Monetary Policy.
In addition the markets are awaiting US payrolls; such a release could give the greenback some hope. USD index has extended its losses since Yellen’s comments, declining to 94.62 levels.
Euro posted its gains vs. USD and traded at $1.14 for the first time in 5 months, thanks to the weak USD. Elsewhere, banks dragged European stocks lower in the worst start to the year since the financial crises and the Stoxx Europe 600 Index was down 1.1% at the close of trading. Therefore, the pair could decline to $1.13 during the day, if everything goes well with US payrolls.
GBP settled at $1.4350 against USD during yesterday’s trading session. The pound outlook for the coming period remains negative and may decline to $1.40.
USD settled against YEN and traded at 112.50, backed by Chicago PMI. The Institute for Supply Management said that it’s Chicago purchasing managers’ index expanded to 53.6 for March vs. 50.7 estimates. USD is awaiting US payrolls, as good numbers could support the Greenback and the pair could re-test 113.50 and 114 levels.
Gold is steady ahead of US payrolls, set for a weekly rise and holding on to its biggest quarterly gain in nearly 30 years. Traders are cautious ahead of highly anticipated US payrolls due later on today.
On Thursday, oil prices pulled back on concerns about oversupply, ahead of an oil producers' meeting in Doha on April 17th.
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.