USD declined against a basket of currencies at the end of last week’s trading session. USD index declined by 0.3%, to settle at 94.22.
The yen rose by 2% vs. USD on Thursday. Japan’s Finance Minister Taro Aso responded early on Friday by warning that rapid currency moves were "undesirable," saying that Japan will take necessary steps under certain circumstances.
JPY rallied to 17-month highs vs. USD, but traders expect BOJ to hold fire on a rate decision until after G20 meetings in Washington later this week. On the other hand, the pair could decline further against USD, during the course of the week.
EURUSD traded above $1.14 at the end of last week’s trading session; backed by German exports for Feb. It is unlikely for the euro to remain strong against the greenback, as the European Central officials’ intervention could weaken the euro in order to support inflation.
GBP settled above $1.41 against USD and could re-test levels of 1.40 once again. It is worth mentioning, that the GBP declined to its lowest level last week and traded at $1.40, affected by the Brexit campaign.
Last week, Gold gained little after Federal Reserve minutes indicated that policy makers remained cautious about hiking U.S. interest rates. The precious metal rose to $1,240 and could reach $1,250.
Oil prices rose on Friday, as exporters could freeze output boosted by international prices. WTI traded below $40 and traders should be careful ahead of the Doha freeze meeting.
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.