The U.S. Dollar Pares Losses vs. JPY

The U.S. Dollar Pares Losses vs. JPY

On Friday, the U.S. dollar steadied vs. a basket of major currencies as markets are on a wait whether the U.S. President Donald Trump will be able to pass fiscal stimulus and move straight onto tax reforms.

  • However, the dollar U.S. index .DXY, which measures the greenback against a basket of currencies, settled at 99.50 pips vs. its counterparts, in anticipation of the upcoming policy statements.

The Greenback settled at ¥111 vs. JPY after an eight straight days of losses. Technically, USD could trade under pressure in anticipation of the U.S. consumer spending.

Euro managed to settle at 1.08 vs. the Greenback amid expectations that ECB could tighten its monetary policy. The common currency is awaiting an important release, which is EUR German IFO - Business Climate (MAR); however, it could decline to $1.0750.

The Sterling failed to settle at $1.25 vs. USD, which was hit earlier last week.

Gold prices declined at the end of last week; however, it could trade higher this week due to the economic policy uncertainty in the United States.

Oil prices increased slightly on Friday and could hit new highs as OPEC and non-OPEC oil producers may extend oil cut another 6 months.

The most important economic events:

  • USD Fed's Evans Speaks on Economy and Policy in Madrid: (GMT: 17:15) - Low

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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