The U.S. dollar rose vs. a basket of major currencies for the third consecutive day as the U.S. final GDP grew at 2.1% pace vs. 2.0% estimate for Q4. In addition, the Greenback rose as well with Trump's economic team studying alternative strategies to penalize China and countries whose currencies are believed to be undervalued.
The Sterling pound hit $1.25 vs. USD after May triggered Article 50. Cable is awaiting the Gross Domestic Product (QoQ) (4Q F); the expecting reading could be 0.7%.
Euro declined yesterday vs. USD and settled at $1.07 on worries that far-right leader Marine Le Pen could win the upcoming French presidential candidate. The common currency was also affected by the recent talks on future EU relations with Britain. Euro is expecting important releases today, such as the German unemployment rate and the Eurozone inflation. Technically, it could decline further to $1.06 during the next period.
Gold prices pared its gains yesterday, negatively affected by a strong USD; however, it gained some support due to uncertainty over the EU’s outlook. Technically, the yellow metal could settle above $1,240 and it is unlikely to decline further.
Oil prices recovered for the third day in a row after Kuwaiti statements bolstered hopes that OPEC and its partners will extend output cut deal. The U.S. crude hit $50 and could settle at such levels during the day.
The most important economic events:
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