U.S. Dollar Falls Slightly

On Friday, the U.S. dollar declined against a basket of major currencies as traders took advantage of a pullback in U.S. bond yields and a week shortened by a holiday boosted gains that have pushed the Greenback to a near 14-year peak.

It is likely that the gains will continue, but the Thanksgiving holiday in the United States, and the settlement of corporate flows before the end of the month have pushed some traders into profit taking.

The U.S. dollar index declined to 101.48 at the end of last week's trading session. There is a 96% chance that the Fed hikes rates at the December meeting.

Gold prices settled at $1,283 at the end of last week's trading session. The yellow metal is awaiting an important data this week, which are the U.S. consumer confidence index and the U.S. economic data.  The precious metal could re-test the technical support level of $1,170.

The Greenback rose as much as 10% vs. JPY and settled above ¥113, the highest level since trump’s victory. Technically, it could decline to 110¥ this week, in anticipation of the U.S. non-farm payroll.

GBP settled at 1.2470 vs. USD as investors are focusing on political risks. Sterling Pound is expected to continue to trade in a limited range, as all eyes now turn to the French elections.

U.S. crude fell as much as 4% on Friday, amid uncertainty over whether OPEC will reach an output agreement, after Saudi Arabia said it would not attend talks on Monday with non-OPEC producers to discuss supply cuts. WTI settled below $46 at the beginning of the week.

The most important economic events:

  • EUR ECB's Draghi Speaks at European Parliament in Brussels: (GMT 16:00) – Important
  • EUR ECB President Draghi Speaks in Brussels: (GMT 18:00) – Important

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.

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