Traders Await the UK Budget 2017

Traders Await the UK Budget 2017

On Wednesday, the Greenback traded lower vs. its major peers as low U.S. government bond yields continued to fall despite traders turning to high-risk assets in the broader financial markets. On the release front, market players are awaiting the U.S. Durable Goods Orders, which expected to hit 0.4% from 2.0%.

  • The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.16% at 93.804pips.

Against the euro, the Greenback fell as much as 0.21%, with EUR/USD at $1.1763. However, traders worry that the ongoing political uncertainty in the euro area’s largest economy will hinder the prospects for reform of the European Union and the common currency.

The Sterling pound rose slightly by 0.08% vs. the Greenback with GBP/USD at $1.3251 ahead of the week's key event - the 2017 budget announcement. On the release front, traders are awaiting in Philip Hammond's budget speech, which will begin at about 12:30 GMT. Mr Hammond will set out spending changes and proposed tax.

The JPY rose as much as 0.32% vs. the Greenback, to settle at ¥112.09. No major reports are due from Japan today.

Earlier today, Gold prices traded higher, extending gains from the last session as traders are awaiting the minutes of the Federal Reserve’s latest policy meeting for further clues on the U.S. monetary policy. Fed Chair Janet Yellen said yesterday that the Fed is "reasonably close" to its goals and should keep gradually raising interest rates to avoid the dual pitfalls of letting inflation drift below target for too long, and of driving unemployment down too far. Gold Futures - Dec 17 (GCZ7) rose as much as 0.27%, to settle at $1,285.22.

Oil prices edged higher, with the U.S. benchmark surging to its highest level since July 2015 amid expectations weekly supply data due later in the day could show a large decline in U.S. crude stockpiles. Crude Oil WTI Futures - Jan 18 (CLF8) rose as much as 1.90% at $57.91 and Brent Oil Futures - Jan 18 (LCOF8) was up by 1.07% at $63.24.

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.

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Your profit and loss will vary according to the extent of the fluctuations in the price of the underlying markets on which the trade is based. Read More
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