Sterling under Pressure and USD Back to Gains

Sterling under Pressure and USD Back to Gains

The Greenback erased last week's losses vs. a basket of major currencies backed by a strong U.S. data. The U.S. Consumer confidence unexpectedly rose in March to 125.6 (forecast was 114), the highest level in more than 16 years.

  • The dollar index .DXY, which measures the greenback against a basket of currencies, erased last week's losses and settled at 99.50 pips.

Elsewhere, the Sterling pound fell as much as 1% vs. USD and settled at $1.2450 after Scottish parliament voted for a second independence referendum, further complicating UK’s political situation just as years of negotiations on the terms of Brexit are about to begin. Today, British Prime Minister Theresa May plans to launch the U.K's two-year procedures of exiting the European Union by triggering Article 50. Technically, Cable could be traded under pressure during the next period.

Gold prices fell to $1,250, negatively affected by a strong USD. Technically, it could trade at $1,244 during the day.

Oil prices rose as much as 1% yesterday, boosted by a severe disruption to Libyan oil supplies. U.S. crude is hovering around $48.30, in anticipation of the U.S. inventories data, which could decline to 1.37 million barrels.

The most important economic events:

  • USD Pending Home Sales (YoY) (FEB): (GMT 14:00) – Medium- Forecast (N/A) – Previous (2.7%).

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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