USD Declines and Markets Await Friday's Nonfarm Payroll


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The Greenback fell vs. a basket of major currencies, negatively affected by Dallas Fed President Robert Kaplan’s remarks as he said that President Trump’s immigration crackdown is already crimping economic growth with undocumented workers fearing deportation are staying home to reduce their spending.

  • The dollar index (DXY), which measures the greenback against a basket of currencies, settled below 97 pips, in anticipation of U.S. private job, which will be released today.


Despite Euro-Zone CPI stayed under ECB target for the 2nd month in a row, Euro jumped to $1.1240 vs. USD. Data showed that the flash consumer price index CPI slowed to 1.4% yoy in May, down from 1.9% yoy. The single currency thanks to a weak USD with Chicago PMI declining sharply to its lowest level since January, down to 55.2 in May from 58.3 in April. Technically, the common currency could trade high, in anticipation of Friday's Nonfarm Payroll.


Gold prices rose as much as 0.7% to settle at $1,271.14 per ounce. Tactically, the yellow metal could trade sideways in anticipation of Friday's Nonfarm Payrolls as a higher than expected reading should be taken as bearish for the Gold, while a lower than expected reading should be taken as bullish for the gold. Meanwhile, the precious metal was positively affected by worries surrounding the White House after reports showed Jared Kushner, the president's senior adviser with his son-in-law discussed with the Russian ambassador the possibility of creating a secret back channel between Donald Trump's transition team and the Kremlin.  


The Sterling pound edged higher to $1.29 vs. USD as UK’s GfK consumer confidence index unexpectedly rose to a level of -5.0 in May, touching its highest level in four months.


Oil prices fell 3% or $1.53 to settle at $50.31 yesterday, as higher supply from Libya and Nigeria helped boost monthly OPEC crude production for the first time this year.

The most important economic events:

  • USD ISM Manufacturing (MAY): (GMT 14:00) – Important – Forecast (54.6) – Previous (54.8).

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.

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