Dollar rose against a basket of major currencies at the end of last week’s trading session, positively affected by the statements of Fed members about interest rates. USD dollar index rose by 0.10% to reach levels of 96.17.
U.S. GDP advanced at a 1.4% seasonally adjusted annual rate in the 4th quarter instead of the previously reported 1% pace, the Commerce Department said on Friday. The economy advanced at a rate of 2% in the 3rd quarter and expanded 2.4% for all of the last year. GDP growth was initially estimated to have risen at only a 0.7% rate.
EUR/USD declined last week and settled at 1.1165, affected by Brussels bombing and a strong USD. The pair could move during today’s trading session.
GBP pared its losses against USD to trade above $1.41. The Brexit campaign and the Brussels bombing negatively affected the pound.
USD/JPY traded above 113 levels, thanks to the statements of interest rates and risk appetite. It is expected that the dollar will continue to rise during the week to 114.40 levels.
Gold prices hit a 4-month low, negatively affected by the USD’s rally and the Brussels attacks. The precious metal declined to $1,212 before settling at $1,218 as it could decline further to the psychological barrier of $1,200 during this week, if everything goes well with U.S. data.
Oil prices declined to hit its first weekly losses in six-week’s. WTI settled at $39.50 and could re-test $40 once again during the coming period.
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.