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The U.S. Dollar Recovers

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On Monday, the U.S. dollar recovered and erased most of its losses. The greenback declined after the FBI announced it is investigating new emails sent by Hillary Clinton on a private server while she was the Secretary of State. USD could positively affect by Clinton's victory in the US presidential election, and such success could pave the way for Fed interest rates hike.

The U.S. dollar index recovered slightly yesterday and settled below 98.40.

Gold prices fell yesterday, negatively affected by a strong USD. The precious metal traded near its three-week high amid concerns over the U.S. elections and the Fed's monetary policy. Technically, the yellow metal could trade above $1,275 in anticipation of the Federal decision, which will be released this Wednesday.

Euro settled at $1.0960 as the Eurozone's economy grew slower than expected in the third quarter. Technically, the single currency is likely to continue to move sideways in anticipation of the Fed's decision.

USD settled below ¥105 in anticipation of the BOJ’s decision, which is unlikely to change anything as the Yen declined vs. USD during the last period. Technically, USD could be affected by such a decision and decline further to ¥103.50.

On Monday, oil prices continued its weakness as Non-OPEC nations made no specific commitment to join the OPEC in limiting oil output levels to support oil prices - pointing out that they want the organization to solve its internal differences first. WTI fell as much as $1 and settled at $47. Technically, touching such level could push WTI to decline further to $45 during the week.

The most important economic events:

  • CAD Gross Domestic Product (YoY) (AUG): (GMT: 14:30) – Important – Forecast (1.3%) – Previous (1.3%).
  • USD ISM Manufacturing (OCT): (GMT: 16:00) – Important – Forecast (51.7) – Previous (51.5).
  • NZD Unemployment Rate (3Q): (GMT: 23:45) – Important – Forecast (5.1%) – Previous (5.1%).

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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