On Monday, the Greenback recovered slightly and was traded in a limited range as several markets in the U.S., Asia and Europe closed for the May Day holiday ahead of the two-day Federal Reserve policy meeting. However, the U.S. dollar was supported after the U.S. Congress confirmed a huge $1 trillion-plus spending bill that avoids a government shutdown, as it will fund most government operations through September.
Euro managed to settle above $1.09 vs. USD as the U.S. factory activity slowed in April dropped to 54.8 in April, while the U.S. consumer-spending index was unchanged in March.
Technically, the common currency could re-test $1.10 ahead of the FOMC statement, which will be released this Wednesday.
Gold prices declined to $1,255 yesterday, as the chance of the U.S. government shutdown reduced. Technically, the yellow metal could manage to trade above $1,245 in anticipation of the two-day Federal Reserve policy meeting. Meanwhile, FOMC officials could keep interest rates unchanged after weaker-than-expected U.S. economic growth data for Q1 of 2017.
Oil prices fell as much as 1% yesterday as the output in Libya has reached the highest levels since December 2014 and as more oilrigs were added in the United States. U.S. crude settled below $49 and could decline further to $48.50 in anticipation of the U.S. inventories.
The most important economic events:
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