The U.S. dollar fell yesterday vs. a basket of major currencies for the second week in a row, negatively affected by the U.S. political uncertainty and as weak U.S. economic growth. The economy grew at the weakest pace in three years in the first quarter of 2017. Last week, the greenback fell as much as 2%, negatively affected by the inability of the US president to perform the fiscal stimulus package.
The euro jumped yesterday to hit a fresh six-month high vs. the greenback on the back of statements by German Chancellor Angela Merkel, who blamed the ECB policies for making euro “too weak.” She also said a weaker euro has made German products cheaper. The single currency could hit $1.13 vs. USD, in anticipation of a series of important economic data on Germany's economy, if the data meets expectations or exceed them.
Despite a weak USD, the sterling pound failed to settle above $1.30 vs. USD yesterday. Cable awaits today's inflation report hearing. However, the sterling could be affected by the coming election as Labour Party has surged in Wales vs. Theresa May's party, according to a recent poll.
Gold prices recovered to $1,260 an ounce and could hit new highs in anticipation of Wednesdays Fed. Minutes.
Oil prices rose yesterday amid growing expectations that members of OPEC could agree to extend the production cuts deal beyond the end of the year. Meanwhile, U.S. crude jumped to $51 per barrel, in anticipation of the U.S. inventories.
The most important economic events:
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