The Greenback failed to hit new highs vs. its counterparts with the U.S. economic slowdown and as Trump did not mention the U.S. economy plan during his speech to Congress.
The U.S. economic growth slowed in the final three months of 2016 to 1.9% versus 2.1% expected growth, it also rose 1.6% for all of 2016, the worst performance recorded since 2011 proven by an official data. However, the U.S. consumer confidence hit 114.8 in February and U.S. home prices rose 5.8% in December 2016.
Gold pared its losses and settled at $1,251, as Trump gave no details about the U.S. economy and made no suggestions on how to pay for his stimulus program. Technically, the yellow metal could re-test its 200-day average of $1,262.
The Sterling pound slipped to $1.24 vs. the Greenback as the head of devolved Scottish government said the "sheer intransigence" of the British government over ‘Brexit’ could lead to a second Scottish independence referendum. Cable could trade under pressure during the next time, as article 50 will enter into effect shortly.
Oil prices fell yesterday and settled below $54 amid concerns over rising U.S. crude inventories, which overwhelmed the impact of OPEC cut deal. Technically, U.S. crude could trade sideways between $53 and $55 during the week.
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.