News

Dollar Index Slides on Expectations of a Dovish Fed

USD

The dollar index which measures the greenback against a basket of major currencies traded near a two-week low of 96.40 as investors expect a dovish tone by the Federal Reserve on Wednesday. The latest inflation data ticked down slightly while the preliminary growth figures were better-than-expected. The Federal Reserve could cut inflation and growth forecast which could also diminish the chances of further tightening. The CME Fed watch tool showed an increase in the probability of an interest rate cut in the fourth quarter of 2019. The EURUSD rose to a two-week high of $1.1351, and the USDCHF tumbled to a low of 1.0007.

Metals

Metals prices surged as the dollar declined along with Treasury yields. The price of a gold ounce bounced-off $1293 to trade near $1305, the silver ounce advanced to $15.35, and palladium continued to hover above $1550.

Oil

Oil prices continue to hover near a four-month high supported by OPEC+ led cuts while gains remain capped by the threats global economic slowdown. The Saudi Oil minister restated that the current supply cuts policy could be extended towards June as the market remain oversupplied. The West Texas Intermediate crude futures traded at a high of $58.55, and Brent futures rose to a high of $67.39.

Major Economic Events

GMT Country Event Expectation Previous
14:00 US NAHB Housing Market Index (Mar) 63 62

 
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