The U.S. dollar declined to its lowest level in four weeks against a basket of major currencies, negatively impacted by soft Nonfarm Payrolls. The Greenback fell as much as 2.3%, its worst January in three decades, amid uncertainty over the U.S. policy. It is unlikely for the Federal Reserve to hike its rate in the next period after weak U.S. data.
Nonfarm Payrolls increased by 227k in January and hourly wages rose 0.1%, the highest for about four months, while the unemployment rate went against expectations and jumped to 4.8%.
Gold settled at $1,220, thanks to a weak U.S. data. Technically, the yellow metal could trade widely and re-test $1,231 during the next period. On the other hand, it could decline to the resistance levels of $1,208 and $1,200.
Sterling pound settled below $1.25, despite a weak USD, as British MPs have voted in favor of government plans to trigger Article 50. Technically, Cable could re-test $1.25 amid a weak U.S. dollar.
Oil prices rose amid tensions between Washington and Tehran, as Trump could impose sanctions against Tehran, which could extend to affect crude supplies and U.S. drilling activity. U.S. crude settled below $54 and could hit $55 due to the recent tensions between Iran and the U.S.
The most important economic events:
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.