Dollar weakness stayed in play for Friday as traders continued to worry about the repercussions of the investigation on Trump's intelligence information leak to Russia.
There were no reports released from the US then so the focus was on political headlines, and it could be the same situation today. A couple of FOMC members are set to give testimonies and any shift to a less hawkish bias could influence Fed rate hike expectations for next month.
However, the U.S. dollar could pare its losses as Saudi Arabian companies and the U.S. signed business agreements worth tens of billions of dollars during a visit by U.S. President Donald Trump. Such deals will create new jobs.
The Euro rose as much as 2.5% vs. the US Dollar and hit $1.12 at the end of last week’s trading session. Technically, the common currency could decline slightly during the week, in anticipation of Mario Draghi's statements and the Fed's latest record, which will be released this Wednesday.
There are no major reports due today but the Eurogroup meetings will take place and discussions will likely focus on Brexit.
The pound ended the previous week strong but was off to a weak start today as the UK government said over the weekend that it is not willing to pay any bill that the EU charges relating to Brexit. UK Rightmove HPI advanced from 1.1% to 1.2% while the CBI industrial order expectations index advanced from 4 to 9 instead of staying unchanged. UK Prime Minister May has a speech today.
Gold prices pared its losses and settled at $1,255 per ounce, as political worries surrounding U.S. President Donald Trump could keep supporting appetite for the precious metal as a so-called safe-haven asset. However, the yellow metal could re-test $1,240 as Donald Trump signed 'massive' deals with Saudi Arabia.
Oil prices boosted at the end of last week’s trading session and U.S. crude settled above $50, on expectations that the OPEC could extend an agreement to limit production when the organization meets later in the month.
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