On Monday, the U.S. dollar extended its losses against a basket of major currencies, negatively affected by Trump's controversial statements. The U.S. dollar index fell to 100.30 and touched a six-week low.
The Greenback declined as newly sworn-in President Donald Trump has signed an executive order formally withdrawing the U.S. from the Trans Pacific Partnership Agreement (TPPA), which signed by 12 countries in 2015, following through on a pledge from his presidential campaign.
Also on Monday, Gold prices hit their highest level in two months and settled at $1,215, positively affected by a soft USD and as uncertainty over Trump’s economic policies, which pushed traders towards safer assets while the Greenback and U.S. bond yields declined. Technically, the yellow metal could jump to $1,221, in anticipation of the decision of the UK’s Supreme Court.
Today, the UK’s Supreme Court will deliver its ruling on the Article 50. Technically, GBP could touch $1.24 and $1.25, if the UK’s government loses its Supreme Court appeal against a High Court ruling that recognized Parliament's right to vote to trigger Article 50.
Oil prices fell yesterday, as officials representing OPEC and non-OPEC members said, almost 1.8 million barrels per day (bpd) they had agreed to remove from the market starting on 1st January, but 1.5 million (bpd) had already been cut. U.S. crude fell as much as 1% yesterday to settle below $53. Technically, it could be supported at $52.50 levels.
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.