U.S. Dollar Bulls

U.S. Dollar Bulls

On Thursday, the Greenback edged higher against a basket of major currencies on strong U.S. data and as Trump said during a meeting with U.S. airline managers, that he would announce the most ambitious tax reform plan that calls for “lowering the overall tax burden of American businesses." The U.S. dollar index rose as much as 0.5% and settled at 100.60 pips.

Euro declined yesterday to $1.065 as an opinion poll showed the far-right leader Marine Le Pen will win the first round of voting when France goes to the polls on 23rd April. The common currency was also affected by Greece and the Euro-zone crisis as such crisis could have a negative impact on the Euro-zone's fiscal policy.  Technically, EUR/USD could decline to $1.06 by today.

Gold prices fell yesterday to $1,230 and could decline to $1,225 by today. The yellow metal declined on comments by the U.S. president Donald Trump that he would announce the most ambitious tax reform plan. In addition, the White House press secretary said, such plan would cut the corporate tax rate to 20%, aiming to give companies incentives to keep jobs and will be comprehensive.

Oil prices rose yesterday after an unexpected draw in U.S. gasoline inventories and on tensions between Washington and Tehran. Although, the U.S. crude settled at $53, but it could decline slightly to $52.50.

The most important economic events:

  • CAD Unemployment Rate (JAN): (GMT 15:30) – Important – Forecast (6.9%) – Previous (6.9%).
  • CAD Net Change in Employment (JAN): (GMT 15:30) – Important – Forecast (-5.0k) – Previous (46.1k).
  • USD U. of Michigan Confidence (FEB P): (GMT 17:00) – Important – Forecast (97.8) – Previous (98.5).

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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