News

Dollar Falls amid Expectations of a dovish Fed this week

USD

The dollar index which measures the greenback against a basket of major currencies lost 0.8% on Friday to settle near a two-week low of 95.81. Market participants await the outcome of the first Federal Open Market Committee meeting this year, and they widely expect the Fed to adopt a dovish tone as the recent economic data raised the chances of a slowdown. The USDCAD tumbled 1% to a two-week low of 1.3215, and the EURUSD gained 0.9% to a ten-day high of $1.1405.

GBP   

The British Pound finished higher for the sixth consecutive week on hopes that Theresa May's plan B could win the acceptance of the parliament. The recent Brexit developments lowered the chances of a no-deal Brexit and favored better scenarios which provided support to the sterling. The House of Commons will hold a second Brexit deal vote on Tuesday. The GBPUSD climbed to $1.3217, the highest since mid-October, and the EURGBP declined to 0.8617, the lowest since May 2017.

Metals

Metals finished last week on a strong note as the dollar weakened. The gold ounce jumped 1.7% on Friday to a seven-month high of $1303, the silver ounce added 2.8% to close a two-week high of $15.73, and palladium advanced 3% to $1367.

Oil

Oil prices settled higher for the second consecutive day on expectations that the United States could impose sanctions on Venezuela's crude oil exports. The West Texas Intermediate crude futures traded at a high of $53.91, and the Brent futures rose to a high of $61.91.

Major Economic Events

GMT Country Event Expectation Previous
14:00 EU ECB President Draghi Speaks    
14:30 UK BoE Gov Carney Speaks    

 

Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. 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. 77.81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Spot FX work, and whether you can afford to take the high risk of losing your money. Read More
Read More
Mail Call Chat