The Greenback hit its highest level in 10 days vs. a basket of major currencies at the end of last week, amid optimism over Donald Trump's tax plan, which will be disclosed soon. Although, USD pared some gains after Japanese Prime Minister Shinzo Abe held a two-day summit with the U.S. President Donald Trump. The U.S. dollar index rose as much as 1% and settled at 100.70.
Gold pared its gains and settled at $1,233, after touching $1,245 on Trump’s statements. Technically, the yellow metal could trade within a limited range and re-test $1,225 during the week, in anticipation of Janet Yellen speech.
Federal Reserve Chair Janet Yellen will deliver her semiannual testimony about monetary policy before Congress on Tuesday and Wednesday. Investors are awaiting such testimony as Yellen could hint on the timing of the next interest rate increase. The U.S. dollar was affected by the uncertainty over the recent U.S. policy, particularly after Trump's ban on immigration from seven Muslim-majority nations.
USD fell to ¥114 vs. JPY after a joint U.S. Japanese statement, which emphasized that the two countries remain fully committed to strengthening the economic relationships between Washington and Tokyo and across the region. The Greenback could settle at ¥113, in anticipation of Janet Yellen’s speech.
Oil prices settled higher last week, after the International Energy Agency said that OPEC’s supply-cut agreement achieved 90% of promised output cuts in January. U.S. crude settled at $53.70.
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