The Greenback slipped yesterday to its lowest level vs. a basket of major currencies since US President Donald Trump won the election, among several concerns on Trump's ability to rely on a splintered Republican Party to follow through on promises of business deregulation and tax reform plan.
The Greenback declined vs. JPY and re-tested the key psychological of ¥110.10, before recovering to ¥110.50. Technically, the pair could trade in a limited range due to the lack of U.S. economic data.
Euro edged higher yesterday and settled above $1.09 vs. USD after Sabine Lautenschläger, member of the ECB's executive board, said the European Central Bank (ECB) should be ready to change its monetary policy as inflation data start to meet targets. In addition, the common currency rose as Germany Ifo business climate index went against expectations and improved to the highest level since June 2011. Technically, it could touch new highs vs. USD during the next period.
Gold prices extended its gains yesterday, boosted by weak USD. The yellow metal re-test $1,260 before paring its losses to settle at $1,265. Technically, the precious metal could hit $1,270 during the next period.
Oil prices continued to decline due to ample inventories and rising US output and amid uncertainty over whether an OPEC-led production cut deal will be extended by six months in an effort to counter a glut of crude. U.S. crude oil traded below $48, in anticipation of the U.S. inventories data.
The most important economic events:
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