As markets are awaiting the European Central Bank’s policy meeting, which will be held later on today, the bank is widely expected to keep its key rates unchanged. In addition, traders are awaiting to hear from European Central Bank President Mario Draghi as he could mention to the outlook of the current bond-buying program. The ECB is unlikely to taper its asset-purchase program due to the recent downturn in inflation, to 1.5% in March.
Euro fell at the beginning of yesterday’s trading session vs. USD and settled below its highest levels in five months due to profit taking. The common currency is awaiting the European Central Bank’s policy meeting, which will be held later on today. Meanwhile, Drahgi does not take the Euro up, particularly with Trump's attempt to decline the Greenback.
However, the U.S. dollar index (DXY) recovered slightly vs. a basket of major currencies, but it failed to settle above 99 pips. The Greenback traded high as Trump's tax plan could cut the income tax rate paid by public corporations to 15% from 35%.
Gold prices rebounded from its lowest levels in two weeks and settled near $1,270, as traders went to save-heaven assets due to geopolitical tensions between the Korean peninsula and the U.S.
Oil prices failed to manage its gains yesterday and U.S. crude declined to $49.
The most important economic events:
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.