Despite strong US data, the US dollar settled lower yesterday vs. a basket of major currencies for the second day in a row as investors reacted to Donald Trump's decision to fire FBI Director James Comey.
The markets await the US inflation data and Consumer Price Index for April, following the decline in the US job report. Good data could push the Federal Reserve to tighten its monetary policy.
The greenback failed to manage its gains vs. its Japanese counterpart, with heightened political concerns in the US, after President Donald Trump fired FBI Director James Comey. USD settled below ¥114 in anticipation of important data, which are the USD Consumer Price Index and USD Advance Retail Sales. A higher than expected reading may be bullish for the USD.
The Sterling pound declined yesterday vs. its American peer as the UK industrial production shrank in March. Meanwhile the Bank of England voted to keep rates unchanged.
Gold pared its losses and settled at $1,225. Technically, the yellow metal could be affected by the US data, which will be released by today. A higher than expected reading maybe bearish for the precious metal.
Oil prices rose yesterday, on the back of a decline in US inventories and rising hopes that OPEC could extend its oil cut deal.
The most important economic events:
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